Department of Science and Technology Institutionen för teknik och naturvetenskap
Quality Assurance of Pressure
Equipment Materials and
Steelwork
Filip Horkeby
Melanie Larsson
Quality Assurance of Pressure
Equipment Materials and
Steelwork
Examensarbete utfört i Logistik
vid Tekniska högskolan vid
Linköpings universitet
Filip Horkeby
Melanie Larsson
Handledare Sayeh Noroozi
Examinator Fredrik Persson
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First we would like to thank Peter Mannewald for the opportunity to conduct our bachelor thesis at Siemens Industrial Turbomachinery AB. Further, we would like to thank all other involved personnel. We would also like to thank Sayeh Noroozi, our supervisor at the University, for all her guidance and support during the time of the thesis. Finally, we would like to thank Fredrik Persson, our examiner, who has helped us with his knowledge around the subject.
i
Sammanfattning
Kvalitetskraven i samhället blir allt högre och det blir allt tuffare för producenterna att hålla de kvalitetskrav som krävs av kund, men också att uppnå de kvalitetsdirektiv som finns i EU idag. Det finns idag en mängd olika definitioner på vad kvalitet är och hur kvaliteten ska uppnås. EU kräver att alla produkter ska ha CE‐märkning, vilket är en försäkring om att produkterna håller den kvalitet som definierad av EU’s lagstiftning. För att möta de krav som finns på kvalitet idag undersöker Siemens Industrial Turbomachinery AB om deras leverantörer följer de direktiv som krävs för tryckbärande anordningar. För att materialen i de tryckbärande anordningarna ska vara godkända krävs det att ståltillverkaren är godkänd för tillverkningen. Ståltillverkaren ska kunna bekräfta godkännandet genom att uppvisa ett så kallat PED certifikat (Pressure Equipment Directive, 97/23/EC), vilket är ett av 20 direktiv inom CE märkning. Leverantörerna i leverantörskedjan identifierades för att kontrollera att de uppfyller PED. Leverantörskedjan sträcker sig från stålverket som producerade materialet fram till SIT och informationen hittades främst i specifika dokument för varje gasturbin. Syftet med detta var att undersöka om underleverantörerna följer kvalitetskraven enligt tryckkärlsdirektivet PED. Kvalitetsverifieringen användes för att hitta information om leverantörskedjan för varje studerad komponent. Detta med syfte att kontakta leverantörerna som refererat till ett PED certifikat till deras produkter. PED certifikatet kontrollerades i sin tur med det Allmänna Organet (Eng: Notified Body) som utförde certifieringen för att bekräfta kvalitetsuppfyllandet.
Undersökningen visar på att de flesta underleverantörer upplever att marknadsövervakningen fungerar bra som den ser ut idag. Studien pekar dock på att så inte är fallet då dokumentationen saknar referenser till PED. Det var heller inte möjligt att hitta alla PED referenser till underleverantörerna i leverantörskedjan. De referenser som hittades var dock korrekta och godkända av ett Allmänt Organ. Detta visar på att det finns möjlighet att referera till rätt PED certifikat men att informationen många gånger försvinner i leverantörskedjan. Trots brister i dokumentationen kan studien konstatera att där referenser finns är de av god kvalitet, vilket gör att kvalitetsuppfyllelsen är relativt god i praktiken.
Abstract
The quality demands in the society today are increasing and it gets tougher for the manufacturers to not only match the quality set by the customers, but also meet the quality directives set in the EU. There are a variety of different quality definitions and how quality should be reached. The EU requires products to be CE marked, which is a way to ensure the product meets the quality defined by the EU legislation. To meet the quality requirements existing today, Siemens Industrial Turbomachinery AB studies if their subcontractors follow the directives set on pressure equipment. For the material in the pressure equipment to be approved, it is required that the steelworks are approved to produce it. The subcontractors need to be able to ensure the approval with a PED certificate (Pressure Equipment Directive, 97/23/EC), which is one of the 20 directives within the CE marking.The subcontractors in the supply chain were identified in order to be able to verify the conformance to PED. The supply chain extends from the steelworks, which produce the material, to SIT and the information was mainly found in specific documentation from the gas turbines. The purpose was to examine if the subcontractors follow the quality set by PED. The conformance verification was used to find information regarding the supply chain for each studied component. This was to contact the subcontractors with references to a PED certificate in their products. The PED certificates were in their turn verified by the Notified Bodies issuing them to ensure the quality conformance to PED.
The study shows the majority of the subcontractors believe the market surveillance to be satisfactory the way it currently is. The thesis, however, shows this is not the case, since the documentation is lacking necessary references to PED. It was not possible to find PED references to all subcontractors in the supply chain. The found references were, however, correct and approved by a Notified Body. This indicates that there is a possibility to have correct references to PED certificates, but the information somehow gets lost in the supply chain. Despite deficiencies in the documentation, it can be concluded when references are available, they are valid, which makes the conformance relatively good in
iii
Contents
1. Introduction ... 1 Theoretical Background ... 1 1.1. Siemens Industrial Turbomachinery AB ... 3 1.2. Problem Description ... 3 1.3. Purpose ... 4 1.4. Research Questions ... 4 1.5. Delimitations ... 5 1.6. Reading Instructions ... 5 1.7. 2. Methodology ... 6 Planning Phase ... 6 2.1. 2.1.1. Background and Task Identification ... 6 2.1.2. Approaches ... 7 The Research Phase ... 7 2.2. 2.2.1. Frame of References ... 7 2.2.2. Task Specification ... 7 2.2.3. Data collection ... 7 The Analysis Phase ... 8 2.3. 2.3.1. Methods for Analysis ... 8 2.3.2. Methods for Discussion ... 9 Method Criticism ... 9 2.4. 2.4.1. The Credibility of the Interviews ... 10 2.4.2. The Credibility of the Conformance Verification ... 10 2.4.3. The Credibility of the Theories ... 10 Source Criticism ... 10 2.5. 3. Theory ... 12 Process Mapping ... 12 3.1. Supplier Relationships ... 13 3.2. 3.2.1. Single‐Component Supplier ... 13 3.2.2. Multi‐Component Supplier ... 13 3.2.3. System Supplier ... 14 Selecting Suppliers ... 14 3.3. Alternative Suppliers ... 15 3.4. Quality ... 15 3.5. 3.5.1. Standardization ... 16 The Role of Pressure Equipment Directives ... 16 3.6.3.6.1. Exceptions from the Pressure Equipment Directive ... 19 Assessment for the Quality System ... 19 3.7. Incorrect CE Marking of Products ... 20 3.8. 4. Technical Regulations and Standardization ... 21 CE Marking ... 21 4.1. 4.1.1. CE Marking Process ... 22 4.1.2. Notified Body ... 22 Pressure Equipment Directives, 97/23/EC ... 23 4.2. 4.2.1. PED Classification ... 23 Standardization in Europe ... 24 4.3. 4.3.1. Harmonized Standards ... 24 Standardization Outside of Europe ... 25 4.4. 4.4.1. European Approval of Materials ... 25 4.4.2. Particular Material Appraisal ... 25 5. Gas Turbines ... 26 SGT‐800 ... 26 5.1. The Studied Gas Turbines ... 26 5.2. 6. Current Situation at SIT ... 28 Process Mapping ... 28 6.1. Supplier Relationship ... 29 6.2. Supplier Selection at SIT ... 30 6.3. Quality Conformance Verification at SIT ... 30 6.4. 7. Results ... 31 Supplier Relationships ... 31 7.1. 7.1.1. Carbon Steel Piping ... 31 7.1.2. Stainless Steel Piping ... 31 Notified Bodies ... 31 7.2. The Market Surveillance ... 32 7.3. 7.3.1. TÜV Nord ... 32 7.3.2. TÜV Rheinland ... 32 7.3.3. TÜV Süd ... 33 7.3.4. Coor Industrial Services ... 33 7.3.5. The Surveillance of the Market According the Subcontractors ... 33 Conformance Verification ... 33 7.4. 7.4.1. Suppliers of Form in Sweden ... 34 7.4.2. Steelworks in Sweden ... 34
v 7.4.3. Suppliers of Form in EU/EFTA ... 35 7.4.4. Steelworks in EU/EFTA ... 36 7.4.5. Suppliers of Form Outside EU/EFTA ... 37 7.4.6. Steelworks Outside EU/EFTA ... 37 7.4.7. Untracked Steelworks ... 38 7.4.8. The Geographical Distribution of the Subcontractors ... 38 7.4.9. General Issues ... 39 7.4.10. PED Certification ... 40 7.4.11. Distribution on PED References in the Studied Pipe Systems ... 40 8. Analysis ... 45 Supplier Relationship ... 45 8.1. The Market Surveillance ... 46 8.2. Conformance Verification ... 46 8.3. 8.3.1. Distribution on PED References in the Suppliers of Form ... 47 8.3.2. Distribution on PED References in the Steelworks ... 47 9. Discussion ... 50 The Credibility of the Results ... 50 9.1. Choice of Theory ... 50 9.2. The Completeness of the Result ... 52 9.3. 9.3.1. Research Question 1 ... 52 9.3.2. Research Question 2 ... 53 9.3.3. Research Question 3 ... 54 10. Conclusion ... 55 Final Recommendations ... 55 10.1. Further Investigations ... 56 10.2. References ... 57 Appendix 1: Glossary ... 60 Appendix 2: Standard Mail ... 61 Appendix 3: List of Respondents ... 62
Figures
Figure 1 A Gas Turbine of the Type SGT‐800 ... 3 Figure 2 The Research Process for this study ... 6 Figure 3 Usual Symbols in a Process Mapping ... 13 Figure 4 Conformity Assessment Diagram for PED ‐ Fluids ... 18 Figure 5 Conformity Assessment Diagram for PED ‐ Gas ... 18 Figure 6 A CE Mark ... 21 Figure 7 Map of the Studied Gas Turbines ... 27 Figure 8 The Studied Process Map ... 28Figure 9 Satisfactory on the Market Surveillance According to the Suppliers of Form ... 33 Figure 10 The Geographical Distribution of Suppliers of Form ... 38 Figure 11 The Geographical Distribution of Steelworks ... 39 Figure 12 Distribution on Written References to PED in the Stainless Steel Piping in the Original Documentation ... 41 Figure 13 Distribution on Written References to PED in the Carbon Steel Piping in the Original Documentation ... 41 Figure 14 Distribution on Written References to PED in the Steelworks ... 42
Figure 15 Distribution on References to PED in the Stainless Steel Piping after the Study ... 42 Figure 16 Distribution on References to PED in the Carbon Steel Piping after the Study ... 43 Figure 17 Distribution on References to PED in the Steelworks after the Study . 43 Figure 18 Consequences of Higher Requirement of Receiving PED Certificates .. 48 Figure 19 Consequences of having the Notified Bodies Verify the Conformance in the Supply Chain ... 49
vii
Tables
Table 1 Notified Bodies ... 31 Table 2 Supplier of Form in Sweden ... 34 Table 3 Steelworks in Sweden ... 34 Table 4 Suppliers of Form in EU/EFTA ... 35 Table 5 Steelworks in EU/EFTA ... 36 Table 6 Suppliers of Form Outside of EU/EFTA ... 37 Table 7 Steelwork Outside of EU/EFTA ... 37 Table 8 Suppliers of Form Without Identified Steelworks ... 38 Table 9 The Number of References to PED in the Studied Documents ... 40 Table 10 Final Recommendations ... 55List of Abbreviations
EFTA: European Free Trade Association EU: European Union
EAM: European Approval of Material
NANDO: New Approach Notified and Designated Organizations. The database containing all approved Notified Bodies. PED: Pressure Equipment Directives PMA: Particular Material Appraisal PS: Pressure SIT: Siemens Industrial Turbomachinery AB V: Volume
1 Industrial Turbomachinery AB, henceforth referred to as SIT, and the main problems investigated for this study. The problem description was used to formulate the overall purpose. Reading instructions are found at the end of this chapter. Theoretical Background 1.1. When you buy a product in a store, you obviously expect the product to have the desired quality. A lot of work has been done before the product can reach to the level of assured quality. This work with quality has already started with the raw material and continued through the supply chain. Quality involves more than what the final customer thinks. (Aronsson et al., 2013)
Defining the quality can be hard (Garvin, 1987). A way to define quality is by inspecting how a product is matching the specifications. This definition is internally focused since it focuses on the product specifications instead of direct increase of the customer satisfaction. This is why it is important that the supplier and the customer have agreed upon the specifications; for example, which specific certificates that are required. The ability of a product to fulfil all the implicit and explicit needs is referred to as the externally focused quality definition. The externally focused quality is not easy to measure since it focuses on the customer satisfaction. This is more of a feeling than something that can be measured and compared between different scenarios. (Lumsden, 2012)
Garvin (1987) argues that there are eight dimensions of quality. The eight dimensions of quality are: Performance, Features, Reliability, Conformance, Durability, Serviceability, Aesthetics and Perceived Quality. Each dimension can be used as a framework to measure the quality: (Garvin, 1987)
1. Performance: the performance regards measurable attributes in the operating characteristics of the products. This aspect of the quality often influences the profitability.
2. Features: the feature regards secondary aspects of the performance. This dimension regards the extra functions in the products.
3. Reliability: this dimension regards how reliable the product is. The key element of the reliability is how long the product work until first failure.
4. Conformance: the way the product characteristic conforms to the established standards. This can be done because all products are made with some kind of specification. This specification can be compared with the established standard to see the conformance. 5. Durability: durability measures the lifespan of a product. The
durability can be extended if it is possible to replace malfunctioning parts in the product.
6. Serviceability: the possibility to repair a product can be measured with the serviceability. This means that the quality also is dependent on how available the repair service is.
7. Aesthetics: the physical appearance, such as the looks and feels of a product, is regarded in the aesthetics dimension of quality. 8. Perceived Quality: This dimension of quality regards how the
product is perceived. The reputation is one of the aspects involved in this dimension.
It is not necessary for a company to focus on all of the eight dimensions of quality. In fact, it is usually an advantage to just focus on improving one of the dimensions. This can be extra important if the competition has an established quality reputation. (Garvin, 1987)
The features, reliability, durability, serviceability, aesthetics and perceived quality are mostly related to the external quality, since it can be hard to define every detail in these dimensions. The performance and conformance are mostly related to the internal quality since they directly regard the specifications. (Garvin, 1987; Lumsden, 2012)
The conformance can be related to different standards (Garvin, 1987). This is because standards are used to simplify the quality assurance, since following a standard means conforming to the specifications (Shin et al., 2015). Products may need conformance to specific standards in order to conform to quality requirements in specific countries. This requirement can for example, be that a product needs a CE mark for usage in the EU/EFTA (European Free Trade Association). To fulfil this requirement it is necessary the manufacturer of, for example, pressure equipment conforms to the standards for Pressure Equipment Directives (PED), see chapter 4.2. (European Commission, 2011)
The quality of a product depends on the suppliers of form and steelworks, which together will be called subcontractors. The suppliers of form are the manufacturer of specific parts. It is necessary to inspect the quality of the subcontractors to verify the product quality. Having a good visibility through the supply chain will simplify the quality verification of both the subcontractors and the products (Tse & Tan, 2011). The visibility though the supply chain is partly dependent on the purchase department, since they are the direct link to the suppliers. In recent years, purchase departments have started to order larger quantities from fewer suppliers. Suppliers have the responsibility to order parts for their customers account. This is why selecting suppliers with the right conformance is important. Preparation needs to be performed in order to be able to choose conforming suppliers. This preparation is meant to verify the quality of the supplier. (Aronsson et al., 2013)
3 Siemens Industrial Turbomachinery AB 1.2. Figure 1 A Gas Turbine of the Type SGT‐800 (Siemens AG, 2013) This project is done at SIT. SIT is located in Finspång, Sweden, and belongs to the energy division of Siemens AG, a large German engineering corporation. SIT produces around 100 gas turbines on a yearly basis. There are approximately 2,800 employees in Finspång. SIT manufactures seven types of gas turbines (Davidsson, 2015). The largest of the turbines is the SGT‐800, see Figure 1, which generates 50MW (Siemens AG, 2013).
Siemens as a parent company exists in more than 200 countries all over the world with over 360,000 employees (Siemens AB, 2014). The gas turbines have been sold all over the world (Siemens Industrial Turbomachinery AB, 2015). Different parts of the world have different requirements regarding certification, see chapter 4.1 and 1.1. All these turbines produce an enormous amount of power and should be able to withstand high pressure. This means that the safety measures around them must be given a high priority to avoid accidents.
Today SIT has many subcontractors, with whom they have no direct communication1. SIT wants to inspect the quality of the products through the supply chain in order to ensure that the products delivered to the customers conform to the legislation in EU/EFTA (European Union/European Free Trade Association). The way the quality of the products is studied is by verifying the conformance to the PED for each subcontractor in order to target any errors in the quality.
Problem Description 1.3.
Having components produced by subcontractors with the right PED certificates is one of the safety measures SIT takes to conform the quality and avoid accidents. However, the problem is that there is a significant risk with inaccuracies with the conformance to PED in the supply chain. If any of the subcontractors lack correct certification, because of inaccuracies or any other
reason, then the part is not valid to be used within the EU/EFTA. In this study, to identify if any certification is missing, the subcontractors in the supply chain have to be traced. This will make it possible to trace the subcontractors, which should be PED certificated, through the supply chain. A conformance verification of the PED certificates was made for the companies that should have a PED certificate in order to assure the quality conformance in the final stages.
Purpose 1.4.
The purpose is to investigate the quality conformance of pressure equipment in SGT‐800 gas turbines regarding the PED certificate in the steelworks and suppliers of form. Research Questions 1.5. This chapter will list the main research questions in this project, which, together, will fulfil the purpose of the thesis. RQ1. How is the market surveillance performed in the supply chain? This question is posed in order to understand how the market surveillance is performed to see if the supply chain conforms to the quality standards.
RQ2. What errors regarding conformance to PED from Notified Bodies are found with the steelworks and suppliers of form? This question is posed in order to see if the subcontractors follow the directives and if there are some kind of irregularities in the PED certification RQ3. How does SIT regard the PED certificate regulation when choosing a supplier? By answering this question, it would be possible to see how SIT works in order to avoid non‐certified suppliers.
5 Delimitations
1.6.
This thesis focuses on the supply chain between the steelworks and the suppliers used by SIT. The site that the gas turbines are installed for final use has to lie within the EU/EFTA. This is because only countries in EU/EFTA have compulsory PED certification, hence it is only those turbines which can be verified in accordance to the PED certification. The materials included in the study are the material that needs to be certified according to the Pressure Equipment Directive, 97/23/EC. Reading Instructions 1.7. This chapter will present the reading instructions. I want to know about the theories behind the study To see the quality legislation the thesis is based on, read chapter 3. I want to know more about the studied gas turbines Read chapter 5 for the studied gas turbines and chapter 7 for the data related to them. I want the result
Read the problem description in chapter 1.3 and the purpose in chapter 1.4. Proceed with reading the result in chapter 6 to 10.
I want the conclusion
Read the purpose, see chapter 1.4. Continue with chapter 10 to follow the conclusion of the study.
2. Methodology
This chapter describes the overall methodology of this study.
In traditional research process, this section is divided into six phases; research, task specification, method, execution, analysis and conclusion (Backman, 2008). The research process for this study is however divided into three phases: the planning phase, the research phase and the analysis phase. The three phases are in turn divided into smaller steps in order to clarify what is included in each phases, see Figure 2, which will be described in the following chapters.
Figure 2 The Research Process for this study
Planning Phase 2.1.
The planning phase is divided into two parts: the background and task identification and the method.
2.1.1. Background and Task Identification
Getting an understanding of the project in the beginning was vital for the entire study. This was to prevent making mistakes in the beginning of the project because of misunderstandings. The direct way to identify the task limits was to create a map of the supply chain. This helped to get an overview of the study. The purpose and research questions are also described in this step. The purpose is supposed to present a problem that should be answered through the research questions. The research questions were built to divide the purpose into more understandable parts.
7 2.1.2. Approaches The original task for the project was constructed by SIT and us. This was to make the project clear from the beginning. The starting approach for the study was set by SIT, but was formed to match the right education area. The Research Phase 2.2.
This phase starts with identifying interesting literature for the study. It also describes the different ways used to collect data.
2.2.1. Frame of References
The main task of the frame of reference was to help in understanding what theories were relevant and useful for the project. It was supposed to give an understanding on what the problem was and how to break it down to a reasonable level. The theories that were mainly focused upon in this study were the quality and the conformance to the PED regulation. The related theories were gathered through literature review.
2.2.2. Task Specification
This thesis studied specific gas turbines at SIT. The thesis covers the supply chain from the steelworks to SIT. A map of the supply chain within these limits was created. This was done for every studied component. The map shows the different steps each component takes, hence shows where the responsibility for the certification lies, for example, which Notified Body has the responsibility to ensure that there is no inaccuracies with its brand name and issued certification. The subcontractors have the responsibility that the right material is used for the right parts. SIT also has a responsibility to obtain the right components with the right quality2. 2.2.3. Data collection The data collection is divided in three parts; the literature review methodology, conformance verification and interviews. The Literature Review Methodology
According to Björklund & Paulsson (2010) information that is obtained from books, journals etcetera can be called literature. This information is often used for other reasons than the original purpose, which is why it is often referred to as secondary data. It is important to have a critical view when using these kinds of references, since they can be biased or not providing the complete information.
A literature study is the foundation when developing the frame of references, see chapter 2.2.1. The strength with the literature study is that it is possible to get a lot of information in a short timeframe. It helps with finding current knowledge within a subject. A disadvantage with the literature study is that it often includes secondary data, which was originally used for another reason. (Björklund & Paulsson, 2010)
2 Sjöholm (2015)
Conformance Verification
Mapping the part of the supply chain that is studied can provide clarity to the system (Aronsson et al., 2013). By narrowing down the study to the studied supply chain, it was possible to see which subcontractors should be verified according to the EU/EFTA legislation.
Collecting the correct data was vital to be able to fulfil the purpose of the study. The data was found by studying documentation from chosen SGT‐800 projects at SIT, see chapter 5, as well as by interviews. The conformance verification focused on finding the supply chain for each studied component in order to verify the conformance to the PED. An Excel document with information that identifies each component was made in order to compile the collected data. The subcontractors, without a reference to a PED certificate, which are mentioned in the documentation, were contacted in order to verify the validation of the PED certificate. All found PED references were verified by the Notified Body that issued it.
Interviews
Most of the interviews started with general questions within the main area of the interview. The general questions are followed by more specific questions in order to gather the required information (Backman, 2008).
Interviews with employees at SIT were done in person. This made it possible to discuss different matters more efficiently. Some of the meetings were formal, where direct questions were asked and answered directly. Other meetings did not have directed questions, but more following up and discussions back and forth. Notes were taken during both types of meetings.
Interviews by E‐mail were the first step when contacting people outside of SIT. E‐mails were also sent within SIT and the University. The first E‐mail to each receiver included a short description of the project, see Appendix 2: Standard Mail. The reason was that the receiver should get an insight of what the project was about; hence give the study a better chance of getting a response. It was also important that the E‐mails contain clearly phrased questions to avoid any misinterpretations.
The Analysis Phase 2.3.
This phase compiles the two first phases; Task Identification and Research Phase. It analyses and discusses the research phase in order to fulfil the purpose and get answers for the research questions. A comparison between the theories and the practice at SIT was made. This was done in order to find any differences between the theories and the practices.
2.3.1. Methods for Analysis
According to Backman (2008) the analysis is supposed to clarify the gathered information in a study. The analysis focuses on bringing the result of the study towards a conclusion. The result of the study was analysed with the theories with regard of the research questions and purpose.
9 The subcontractors’ conformance to the PED certification in the SGT‐800 gas turbines were analysed as well. This was done by evaluating any inaccuracies with the PED certification, see chapter 4.2.
In order to analyse the result with the theories, it was important to first understand the verification system regarding PED at SIT. This is why the analysis evaluated the current quality verification though the supply chain. When this was done, the analysis continued with a comparison between the current situation at SIT and the theories.
2.3.2. Methods for Discussion
The discussion was built around the analysis, purpose and research questions. It focused on finding a solution on the problems revealed by the study to the benefit of SIT. The discussion is divided into three parts. The first part of the discussion concerns the choice of methods. A discussion on the advantages and disadvantages with the methodology was done. This was in order to see if another method would have changed the outcome of the study. The choice of the theory was discussed in the second part of the discussion. This clarified how the theories helped the project to fulfil the purpose and to answer the research questions. The third part of the discussion regards the result. A discussion on how complete the conformance verification was and the reason behind it was performed. Method Criticism 2.4.
According to Björklund & Paulsson (2010) the credibility should always be questioned in order to estimate the results. A way to do this is to measure the credibility in terms of validity, reliability and objectivity. The relevance to the purpose of the analysis should always be questioned when conducting research of any kind. The analysis, when conducting a research, has to be questioned. This is because any error in relevance comes from errors in the research phase.
Björklund & Paulsson (2010) describes two different ways that can raise the validity when conducting a study. One way is to triangulate general information and the other is to formulate transparent and unbiased questions when conducting an interview.
The reliability is the ability of the method to resist the influence of various coincidences in the interview situation. A way to increase the credibility according to Björklund & Paulsson (2010) is to use control questions in the interviews. A control question is used to increase the credibility of the interview since they verifies the important aspects of the interview.
It is important to clarify and motivate the choices that have been made in the study, to increase the objectivity. This is because it gives the reader an opportunity to decide how to take a stance to the study. (Björklund & Paulsson, 2010)
2.4.1. The Credibility of the Interviews To increase the credibility of the interviews, several people were asked similar questions in their fields. This made it possible to triangulate the information and confirm the validity of the interviews. Control questions were also asked in order to see if answers changed depending on how the question was formulated. 2.4.2. The Credibility of the Conformance Verification
A template was constructed specifically for the purpose of the study. This template was designed to include all the information needed for the conformance verification. By contacting the primary sources for all specific data and confirming it with the Notified Body, see chapter 4.1, the credibility of the study was increased.
2.4.3. The Credibility of the Theories
In order to raise both the validity and the reliability of the study, secondary data was used. The secondary data was used impartially in order to keep the objectivity. Several references were used for some of the theories, which made it possible to get an unbiased opinion.
Source Criticism 2.5.
According to Backman (2008), it is important to choose related references for a study. The following references were chosen because they are related to the subject of this study. Relevance and credibility of the individual references are explained separately in the following paragraphs.
Aronsson et al. (2013) is a reference used in this study. It is an article with presented references. The information presented in the source is current, since it came out 2013. The reference was originally created for educational purposes. There are other references used in this project that have the same or similar information in them.
Baylac & Larabi (1999) are published authors with clear references. The information is current since it is based on current European legislations.
Finger (2006) published an article that addresses the EN 10204 standard. This is an article with presented references. The information is current since it is based on current legislation. The article is also referring to the European legislation, which strengthens the credibility.
Garvin (1987) wrote about eight dimensions of quality and how they can be applied. This article is still current and has been evaluated by other authors. Garvin has described how he came up with the idea of eight dimensions of quality and is an original reference within the subject.
Jonsson & Mattsson (2011) presented their references in their study. This makes it possible to verify the information in relation to their references. The information is still current, since the theories in the books are similar to those in Aronsson et al., (2013). The reference is used for educational purposes, meaning it can be assumed that the authors do not have any biased opinions. The publishing house was a student specific organization.
11 Ku et al., (2012) informs the reader about the effects of product quality. The information in this article is still current since it was published 2010 in an academic journal and has been evaluated by other impartial people that are familiar with the subject. The author of the article has presented the references that were used.
Lumsden (2012) is written with an educational purpose in mind. All the information is current. The information from this study has been compared with Jonsson & Mattson (2011) and Aronsson et al. (2013). This shows that the three of them are all current and have valid information. Lumsden (2012) has listed the references used in the book.
McBain (2003) wrote with the intent of explaining the PED. He has referred to other academic journal. The information he writes is current since it is based on current legislation.
Rodrigues Lima et al. (2014) write about which steps that is needed when adapting new suppliers. They write with educational attempt. All references are presented clearly and the information is current since there have not been any large changes within the subject they wrote about since 2014.
Tse & Tan (2011) writes with the purpose of doing a case study. The article is in an academic journal and has therefore been read and evaluated by other authors that are working within the fields of the article. A list of the references is included in the article.
The references from Your Europe and the European commission are both written by EU. This means that both references are written in accordance with the European legislation. The legislation is valid for all the different references by these authors even though there were no references to any written reviews. This is because there have been reviews when drawing up the legislations. Using these references to write about the CE marking and the related information should be the best way since these are the original references.
Yilmaz Börekçi et al., (2014) write about alternative suppliers. The information is current since it is a quite new source. They have clear references in the journal.
Zeman (1998) writes about the usage of PED. The article is an academic journal and has valid references to the EU legislation and other published authors. It is written with the intent of explaining the legislation behind pressure equipment in the EU/EFTA.
In addition, several sources from SIT have been used. They are mainly used when describing the situation at SIT. The sources have been both internal and external. SIT should be a good source when writing information regarding the company. All information from SIT has been verified with documentation, and it is possible to find the same information in external sources.
3. Theory
This chapter presents the theories used in the study. The first subchapter explains how the mapping of the supply chain is performed. The process map is essential because it describes the current situation and can be used to limit the study. Understanding how the supply chain works is necessary to comprehend the relationships between the actors. This is why the next theory presented regards the supplier relationship. The supplier relationship is used to describe the cooperation between actors, which can have an impact on how information is managed within the supply chain. The subchapter that is presented next is theories on how to select suppliers. The chapter that follows regard alternative suppliers, which explains why it is an advantage to have several suppliers to choose from. The quality, which essentially is the base of this study, is placed thereafter in this chapter because it is necessary to understand the previous theories in order to comprehend how the quality conformance affects the supply chain. Theories about PED are placed lastly in this chapter, since it is necessary to understand what quality means in order to fully understand the importance of PED. Process Mapping 3.1. To conduct a study, it can be effective to map the part of the supply chain that is to be studied. This is because it makes it easier to see what is to be a part of the study and what is to be excluded. A way to narrow the range of a study is to map the supply chain and exclude the non‐vital parts. Mapping the supply chain gives an insight on the material flow. It shows what activities that are being performed in the supply chain, for example, how processes and information are managed through the chain. It is essential to know the current situation to be able to make any improvements, since it is hard to study how changes affect the supply chain without any comparison. This map can be made more or less detailed, depending on time limitations and the scope of the study. (Aronsson et al., 2013)
Figure 3 shows the most common objects when creating a map of the supply chain.
13 Figure 3 Usual Symbols in a Process Mapping (Aronsson et al., 2013) Supplier Relationships 3.2. Corporations tend to use fewer suppliers now in the recent years than what was usual further back in time. This is because fewer suppliers mean less administrative work. Fewer suppliers also make it possible to cooperate more closely, since there more time can be spent on each specific supplier. There are some disadvantages with close cooperation; one of the companies can end up being dependent on the other. This usually happens to the smaller company in the relationship. (Lumsden, 2012)
The supplier relationships can be divided into three types; a single‐component supplier, a multi‐component supplier and a system supplier. It is possible to combine and use all the different kind of suppliers for a company. (Lumsden, 2012)
3.2.1. Single‐Component Supplier
A single‐component supplier is a supplier that only delivers one specific component to a company. This is usually done when a company orders from numerous suppliers. The advantage with having single‐component suppliers is that the chosen suppliers are good at their specific components. This means that the company can choose specific suppliers for each specific product. The disadvantage is that much administrative work is necessary to sustain this kind of supply chain. (Lumsden, 2012)
3.2.2. Multi‐Component Supplier
A way to handle purchases is to only choose one supplier. The supplier has to deliver multiple components. This can save administrative costs for the company, since it is not necessary to have contact with as many suppliers at it would have otherwise. The disadvantage is that the supplier is not necessary the most suited to deliver some specific components. (Lumsden, 2012)
3.2.3. System Supplier
System purchase means that a company orders a system from a supplier. A system is a number of components and articles that together form a system. A system does not need to classify every single component in the order, which is why a system works for reducing the number of ordered components. Reducing the number of single ordered components reduces the amount of administration needed. When the system is delivered, then it is the system needing verification, not every single component. The supplier gets the responsibility to build the specific system and order every component in accordance with the specification. (Lumsden, 2012)
Selecting Suppliers 3.3.
It is important for a successful business to choose the right suppliers for the right purpose. This is why the preparations are important when choosing suppliers (Aronsson et al., 2013). Rodrigues Lima et al. (2014) argue the supplier selection is a decision‐making process that needs to follow several steps: (Rodrigues Lima et al., 2014)
1. Defining the situation. It can be necessary to search for new suppliers for new or current products.
2. Converting requirements into decision criteria. There are usually several criteria that need to be fulfilled in the decision process. These can for example be quality conformance, delivery time and/or cost. This steps lists the criteria that needs to be fulfilled.
3. Reducing the initial set of suppliers. This step sorts the potential suppliers from the non‐conforming suppliers based on the second step.
4. Ranking the potential suppliers. The last step is to rank the potential suppliers from step three based on the importance of the criteria from the second step.
Aronsson et al. (2013) agrees it is important to divide the decision‐making process when choosing suppliers. Unlike Rodrigues Lima et al. (2014), Aronsson et al. (2013) refers the following two steps: (Aronsson et al., 2013)
1. The first step is to make preparations, for example, by specifying the different requirements that needs to conform. The different approaches on how to specify the requirements depend on the type of company. If, for example, it is important for the company to get the products quickly it may be better if the supplier is located near the activity. Other aspects can, for example, be quality and safety. This is important for companies that produce according to standards or customer service.
2. The next step is to target suppliers that meet the requirements. The suppliers that meet the wanted requirements are then evaluated against each other to find the most suited for the task. The evaluation can be done in different ways depending on what requirements the company find most important. There are different approaches to evaluate the suppliers and the most common one is to quantify them in cost terms, making it possible to compare the approved suppliers. It is, however, not always
15 possible to compare the suppliers this way, therefore the company has to systematically compare the suppliers according to what requirements the company value the most. Alternative Suppliers 3.4. There are several advantages with having alternative suppliers. An advantage for example, is having many suppliers to choose from. This gives the buyer a better negotiation position, since the buyer can compare the prices from the different suppliers. Having this opportunity can save both money and time because the supplier needs to adapt to the buyer in order to keep a relationship with the buyer. It is also important to have close relationships with alternative suppliers as it broadens the possibilities to get the specified products desired.
In order to receive these advantages it is important to choose suppliers with potential to adapt and learn from the company. This means it can take some time for the company to get new alternative suppliers that have adapted to the requirements. Letting the suppliers and alternative suppliers adapt to the requirements from the company can lead to more long lasting relationships with more devoted suppliers in the long term. (Yilmaz Börekçi et al., 2014)
Quality 3.5.
According to Montgomery (2009) the eight dimensions of quality that Garvin (1987) introduced can be summarized as questions in order to understand what the dimensions are supposed to provide. The dimensions are as follows; Performance, Features, Reliability, Conformance, Durability, Serviceability, Aesthetics, Perceived Quality. (Montgomery, 2009)
1. Performance: Do the product perform the intendant job the product is made to do? Potential customers often perform tests on the product in order to decide if the product follows the expected performance.
2. Features: What is the product supposed to do? Some customers associate high quality with products that have additional features.
3. Reliability: How reliable is the product and how often does it fail? Complex products such as turbines, airplanes and cars have to be repaired sometime in their lifespan. The customers often associate quality with the reliability, i.e. the fewer times a product has to be repaired, the better. 4. Conformance: Is the product designed to fit the standards? People usually think of a high quality product as one that conforms to the requirements and standards placed on the specific product. Manufactured parts that do not conform to the requirements can cause significant quality problems when used as the components of a more complex assembly.
5. Durability: How long is the product lifespan? The durability measures the lifespan of a product. This dimension is important for the customers in order to understand how long they can expect the product to function.
6. Serviceability: Is it possible to repair the product? The serviceability is important to some customers in order to know if it is possible to repair the product and how quickly and economical a repair can be made. 7. Aesthetics: How is the appearance of the product? This is the visual
appearance of a product. This dimension takes styles, colour and shape into account. 8. Perceived Quality: What is the reputation of the products or the company behind them? In many cases, costumers rely on the companies’ history of good and qualitative products. Garvin (1987) argues it is not necessary to focus on all eight dimensions. In fact, it is usually an advantage to just focus on improving one of the dimensions, such as the conformance.
The quality conformance regard different standards, see chapter 3.5.1. Some standards only need conformance with the manufacturer to be approved, while other standards require conformance in the entire supply chain. Regardless, it is important that all manufacturers conform to the standard. (Montgomery, 2009)
3.5.1. Standardization
A standard can be defined as the standard specification of procedures and products. It is important the standard is issued by a legitimate authorisation for the standard to be accepted by the market. A standard that is not accepted by the market will not be seen as credible, hence will not serve any purpose when used. Standards are used for quality assurance and for simplifying the specification process. This is because a well‐defined standard contains all specification regarding the product quality that is necessary. An inferior but well‐defined standard can be used as a strategic advantage compared to not following a standard, since it is easier for the market to comprehend the standardized specification than having to understand each specific specification. This is also why a well‐defined standard can be used to raise the credibility of the product quality. (Shin et al., 2015) The Role of Pressure Equipment Directives 3.6. The idea of PED is to make it easier to trade between countries but still keep the high quality and safety of the products. Construction and inspections of the PED in the European Union (EU) are ruled by national regulations. This means that the specific ways to ensure the conformance to the EU Directives is set on the specific European countries where to product is imported to or produced (Baylack & Larabi, 1999).
The Pressure Equipment Directives (PED) applies to the manufacturer, conformity and design assessment. The purpose of this is it ensures the conformance to the EU market and the legislation (McBain, 2003). The EU regards pressure equipment and assemblies bearing the CE‐mark as conforming to all provisions of the PED. There are several types of equipment that are referred to as pressure equipment. Some overall kind of pressure equipment are pipes, vessels and all other kinds of accessory that is exposed to high pressure. (Zeman, 1998)
17 fall under article 3.3, see Figure 4 and Figure 5. Pressure equipment that fall under article 3.3 does not need a PED certificate and may not be CE marked. Pressure equipment that have more pressure and need to be certified under PED are on the other hand in the need of being marked with the CE marking to display the conformance. (Zeman, 1998)
The articles that have some kind of safety risk are categorized into class I, II, III & IV. If the pressure equipment is classified into one of these classes it needs to be certified according to the PED. Figure 4 and Figure 5 can be used to find out what class specific pressure equipment. It can be read by knowing the maximum allowable pressure (PS) and the volume (V) for the pressure equipment. The point where the actual PS meets the V determines the hazard level. This means that have a high maximum allowable pressure and/or that the vessels contains large volume will increase the hazard level compared to pressure equipment lower limits on the maximum allowable pressure and lower volume. (Zeman, 1998)
Pressure equipment is classified into risk categories, according to the hazard level depending on if the content is fluid or gas, see Figure 4 for fluid and Figure 5 for gas. Figure 4 and Figure 5 show the maximum allowable pressure (PS) for each category and the volume (V) for each group of content. The higher the level of hazard, the more extensive the level of quality assurance required during the design, manufacturer and testing of the equipment, in order to reach the criteria for the PED and to lower the possibility of any kind of accidents that otherwise could happen. (Zeman, 1998)
The maximum allowable pressure for the pressure equipment is the maximum pressure that the equipment is designed to withstand. There are different types of devises designed to protect the pressure equipment from the allowable limits of pressure being exceeded, these are switches of different kinds. There are fluid level switches, temperature switches, pressure switches and safety measurement control and regulation. (Zeman, 1998)
Figure 4 Conformity Assessment Diagram for PED ‐ Fluids (Zeman, 1998)
Figure 5 Conformity Assessment Diagram for PED ‐ Gas (Zeman, 1998)
19
3.6.1. Exceptions from the Pressure Equipment Directive
There are many kind of pressure equipment that fall under PED, as mentioned in chapter 3.6. There are still some kinds of pressure equipment, excluding the equipment that fall under article 3,3, that are not covered by the PED. These are the following: (Zeman, 1998)
• Pipelines designed for transport of any fluid or gas between different installations.
• Equipment covered by other directives such as aerosol directives. This is because they are covered by specific requirements for nuclear use and therefore regulated by other EU Directives.
• Low‐pressure risk equipment, which is also subjected to other directives. It is the manufacturers’ responsibility to ensure the material that fall under the PED is certified according to the legislation for the specific material. This means the material needs to be categorised for the purposed usage, for example, whether the pressure equipment is meant to hold gas or fluid and which classification it is to cohere to. (McBain, 2003)
Assessment for the Quality System 3.7.
The quality conformance needs to be performed in accordance with a Notified Body (Baylac & Larabi, 1999). This conformance verification should include the following information: (Zeman, 1998)
• All relevant information regarding the pressure equipment • The documentation that regards the quality system
• The technical documentation for the approved design examination certificate
These three paragraphs include information about e.g. the manufacturing, quality control, quality assurance techniques and welding procedures (Zeman, 1998). There are, however, still divided opinions on how the manufacture should present the documentation in order to ensure the conformance to PED. This puts more responsibilities on the manufacturer to produce documentation that is approved by the Notified Bodies and other operators for ensuring the conformance. (McBain, 2003)
The manufacturer and the buyer can agree upon following a standardised document: EN 10204. The EN 10204 is a standard test certificate, which ensures the conformance to PED. This document can ease the verification process, since this is a harmonized standard that verifies the conformance to PED. Following the EN 10204 will ensure the quality of the pressure equipment and verifies that the equipment conforms to PED. This means the EN 10204 can be used as conformance instead of having to attach all the documents listed above through the supply chain. (Finger, 2006)
Incorrect CE Marking of Products 3.8.
Products, such as pressure equipment, that fall under a CE Directive have to be branded with a CE marking. This CE marking act as a passport into the European Market. This is because a CE marked product is assumed to have correct conformance to the related CE Directive. The products that have CE marking can then travel freely within the EU/EFTA. If a product is required to be CE marked but is not, it violates the EU /EFTA legislation. (Wende, 2015)
Not all products that are sold in the EU /EFTA fall under a EU Directive. This kind of products may on the other hand not be branded with a CE marking. This is because a CE mark is supposed to ensure the conformance to a EU Directive, which is not applicable on products, which do not fall under the EU Directive. (Wende, 2015)
Producers that are found selling products that fall under a CE Directive but are not marked with a CE marking, and/or selling products that are marked with a CE marking that are not supposed to it are breaking the EU legislation. This violation of the law can give severe consequences to the company involved. The severity of the consequences depend on what European country that the misbranding happened. This is because some of the Directives are not affixed with a specific legal justification. An aspect that needs to be considered when the consequence is selected is how severe the misbranding was. For example, a minor test that is incorrectly made is not as severe as when a direct fraud can be proven. (Wende, 2015) Germany is a country with specific legal justifications for offences against the CE marking. They have explicit penalties in this matter, for example, by imposing a fine of up to €10,000. In addition, the Notified Bodies may also subject measures they find suitable. Banning of the product until conformance to the Directive/CE marking are examples of additional measurements that can be set. (Wende, 2015)
In addition to the two kinds of violations against the CE marking mentioned above, producers may not add misleading advertising that can be used for unfair competition, for example, by writing that the product are “CE tested”. This specific example was held as not permitted by the Higher Region Court Frankfurt. (Wende, 2015)
