OVERVIEW
1. Introduction
This document is a report on the Peer Review (hereafter, "Review") of IHI Corporation.
The Reviews conducted by Japan Nuclear Technology Institute (hereafter, "JANTI") are
implemented by Review teams consisting of JANTI members and JANTI specialists visiting
the business establishments of member companies. Under the theme of nuclear safety, theReview is carried out from a professional standpoint, eliciting any problems that may exist in
the said business facility (division) as well as examples of good practices that other members
could benefit from by following, and points that need improvement, and by introducing thesepractices far and wide, the aim is to contribute to the improvement of Safety Culture in the
nuclear energy industry on the whole.

2. Overview of the Reviewed Facility
Since Ishikawajima-Harima Industries Co., Ltd. (which officially changed its name to IHI
Corporation (hereafter, "IHI") as of July 1, 2007) commenced nuclear business in 1955, thecompany has designed, manufactured, installed, and serviced many machines and equipment
for boiling water reactors (BWR). Among the principal machinery and equipment for lightwater reactors, so far, the company has a track record of manufacturing 25 reactor pressure
vessels, as well as reactor containment vessels and large-component piping for nuclear
reactor systems and the like.
In addition, making use of its BWR manufacturing expertise, the company also endeavors
in the manufacture of new types of reactor apparatus such as fast reactors, high-temperature
gas-cooled reactors and others. Since 1978, the company has also made inroads into the
nuclear fuel cycle field, mainly in the design and construction of high level waste
vitrification facilities and facilities for the storage of vitrified blocks. Since October 2006,
the company has also been a player in the pressurized water reactor (PWR) market withproduction taking place at the Yokohama Machinery Works, which mainly manufactures
apparatus exclusively for use in the nuclear power field.
The Nuclear Power Division which underwent the current Review is the division of IHI
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that is centered around the nuclear power business.
As of July this year, the number of employees directly engaged in nuclear-related work in
the Nuclear Power Division was about 400 persons, and with the inclusion of employees ofcontractors, the number is approximately 450.

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3. Approach and Point of Review
In the current Review, attention was given to the quality assurance endeavors that lead tonuclear safety and communication between regular employees and the top strata ofadministration, and the operations that are related to the nuclear power apparatus design &manufacturing process.
In more concrete terms, four topics were taken up, which are the three fields of"organization & administration," "training" and "design & manufacturing," plus the item of"prevention of human error," which JANTI has made one of its priority issues.

4. Implementation of the Review
(1)

Date
September 5 to 7 (Wednesday through Friday) 2007

(2)

Review team members
Team Leader: JANTI NSnet Division personnel
Team Members: four persons under the Team Leader(Nuclear Fuel Transport Co., Ltd.: 1, Japan Atomic Energy Agency: 1, JANTINSnet Division personnel: 2)(3)

Review team assigned areas
Group A: Organization & Management, Human Error Prevention
Group B: Education & Training, Design & Manufacturing

5. Review Schedule
The Review was carried out over a period of three days, for which the following tableshows a summary of the schedule of each of the groups.

3Implementation Schedule
Group AGroup B

(Organization & Management, Human Error Privention)(Education & Training, Design & Manufacturing)

Opening (Salutations, introduction of team members, explanation of recent circumstances at the plant, etc.)

I. Organization &AMManagement
IV. Human Error
Prevention

・planning and implementing

・ organizational policy &II. tEducation &objectives
・promotion of safety culture documents
・ campaigns to improve

III.

Design&(passing down expertise)・recognition of qualifications

Manufacturingmoralstraining
・ method of implementation documents

Training

・effective design management

Senior Division Manager
PM
I.

Organization& Management

class・organizational methods &interviews

objectives
・leadership

Senior Division Manager class
I. Organization & ・ organizational methods &Management
objectives
・leadershipmanagerial classinterviews

・leadership

5

I.

Septe

Organization (・initiative/recognition& Management

・clarification of objectives andscope of responsibility
・delivering safety message)IV. Human Error・human error prevention

mber
(Wed)
PreventionII.
interviews

Education

Trainingwithmanagerial& class
・training plans
・ understanding
effectivenessinterviews
training

confirmation of manufacturing

on-sitesite by observation by designers

managerial classinterviews

on-sitemanagerial classIII.
interviews

Design・design management, design& inspection

Manufacturing

・design standards
・management of contractors ininterviews

manufacturing
・communication with site of
manufacturing[consultations withhost

executive

office]
6
Septe

AM

[observation

confirmation of results of[consultations with

Reviewhost

confirmation of plan forsecond day, etc.

of morning meeting, state ofevents]parts management, etc.

executive

office]event

confirmationofresultsofReviewconfirmation of plan for secondday, etc.

[on-site

in-plantobservations]

meeting and job performanceworksitepre-work

on-site

mber
(Thu)

I. Organization &Management
IV. Human Error
Prevention

・

qualityassurance

・ prevention of human errorII.
managerial class・

quality

Educationinterviews&

Training
assurance

I. Organization & programmeManagement

member class・
implementation
andimprovement of training

documents

programme(endeavors in product safety)

member class・implementation of training

interviews

・knowledge and experienceinterviews

・passing down expertise

contractors
・endeavors in product safety

member class (design)
member class・prevention of human error

interviews

III.

DesignManufacturing& ・ degree of knowledge andexperience・passing down expertise4

interviews

PM

I.

Organization member class& Management

worker class (manufacturing)・safety culture promotion
campaigns

interviews

・ campaigns to improveIII.

design&manufacturing

・ degree of knowledge andexperienceinterviews

・work environment

morals[confirmation of facts]
affirmation and coordination of Review results with host / preparation of closing report documents
team meeting (80 minutes)
7
Septe AM

[confirmation of facts]
final coordination with host / final check of closing report documentsmber

preparation for closing (copy documents, prepare assembly hall)

(Fri)
PM

closing (explanation of results, closing remarks)

6. Review Method, Items Reviewed, and Summary of Review Results
The Review method, items reviewed, and summary of Review results are presented
below.

6.1 Review Method(1) Verification of documents
The Review was carried out by having the business policy, explanation of standard
documents, and various other related documents presented for each respective Review
item.

(2) Interviews
Interviews on the theme of "endeavors in nuclear safety" were carried out with a totalof approximately 40 persons including the Senior Division Manager who is the top
administrator, managers, and regular employees.

Also, whenever there were any

uncertainties while documents were being verified, it was investigated throughinterviews.

(3) On-site observations
Direct observations were made to find out how things were being handled at theworksites, and the matters verified through document verification and interviews werereviewed along with activities of the Division.

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In addition, while the Review team member were observing the worksites, conducting
interviews, and verifying documents, opinions were exchanged between the Divisionand the Review team, with the Review team citing information and examples of "bestpractices" that are employed within the nuclear power industry at large that would serveas useful reference.

6.2 Items Reviewed
The four items reviewed are the three fields of "Organization & Management," "Education& Training" and "Design & Manufacturing," plus one item of "Human Error Prevention."

6.3 Summary of Review Results
Documents were verified, interviews conducted, and actual worksites observed withregard to each Review item, and examples of good practices and areas needing improvement
were elicited.
For the purpose of this discussion, "good practices" shall be defined as "examples ofcustoms that are especially exemplary and which yield good results from among those safetyassurance activities being practiced by the said division, the adoption of effective, precise,original techniques, best practices or processes that JANTI sees appropriate to pass on not
only to other JANTI members, but widely throughout the entire nuclear industry as well.""Suggested improvements" shall be defined as "from the perspective of striving for theultimate best level of nuclear safety, in line with the best practices from among the nuclear
power industry, proposed in order to raise and improve the safety assurance activities of thesaid division." Toward this aim, suggestions for improvement are sometimes made, eventhough the current state of activities is the same as or better than what are considered average
standards throughout the nuclear power industry.

7. Summary of Interview with Senior Division Manager
A summary of the interview with the Senior Division Manager is as follows.
(1)

Endeavors toward improving and promoting safety culture

6Endeavors are being made to promote safety culture through the further unified
emphasis on quality, compliance, and adherence to ethics by engineers. With regard tocompliance, company-wide lecture courses were established about two years ago and in
addition to carrying out education, e-learning programs are also being effectuated. New
employees are being taught intensively of the need for quality, compliance, and adherenceto ethics by engineers.

(2)

Strengths and weaknesses of the Nuclear Power Division
The Nuclear Power Division supplies cutting edge quality products and its TQM

activities won the Deming Prize in 1995. The Senior Division Manager selects threeimportant themes from among those themes put forward by all divisions in regard toquality control, and specialists from outside the company are brought in during TQM
training sessions to provide guidance. Furthermore, it is requisite that IHI must make a
success of the Rokkasho vitrification facility by whatever means necessary, and reliable
techniques and quality engineering went into the design of that facility. Specialist fromoutside the company were also brought in to provide guidance.
On the other hand, the passing down of expertise is a challenge. Nuclear relatedorders have tapered off and efforts are being made in the passing down of expertise in thefield of chemical engineering machinery, but it is felt that when nuclear related orders start
picking up again, it will be necessary to reconsider the required technology and humanresources.

(3)

Disseminating top-tier policy among the on-site frontline workers
Every April, the Senior Division Manager Policies are drawn up and made known atassemblies attended by all personnel. As for the set policies, the policies are expanded inconcrete terms within each stratum of the hierarchy, and eventually reflected in the MBO(Management By Objectives and self control sheets) used by all employees.

The

important policies for each of the departments are indexed, checked at the monthly general
quality assurance deliberation committee, and the needed instructions are given.

(4)

Lessons learned from the Monju incident and activities to prevent the lessons frombeing forgotten
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The "Monju" sodium leak accident set the development schedule for fast breeder
reactors back by a large margin and dealt a strong blow to the development of nuclear
power in Japan, for which our company keenly feels the responsibility. Recently the
number of people who know about this trouble is increasing, but this is a problem which
absolutely must not be forgotten, and this theme has been worked into the training. We
are trying hard to prevent the problem from being forgotten, even now that it is 12 years
later.

(5)Endeavors in passing down expertise
Expertise is passed down while keeping in mind the machinery itself and its relation to

the engineering expertise needed for its production.

Regulations and standards arenecessary conditions, but these conditions alone are not enough. Sufficient conditions
can only be met by passing engineering expertise down from person to person. A chainof engineers passing information along is what is needed, and the insufficient expertise canbe augmented by experienced elder workers.

(6)

Report culture
As far as report culture is concerned, efforts have been being made for some time

already to improve communications as part of a company-wide campaign for thereformation of awareness. During training, the opportunity is provided for executive
staff, personnel in key positions, those who are in line for key personnel positions, and thestaff to take part in opinion exchange sessions about 30 times per year. These start off
with explanations of objectives by each individual person, followed by one to two hours of
free discussion. In the beginning there were mainly calls for the improvement in theworking environment, but gradually their true feelings started coming out.
Efforts are made to refrain from becoming angry when subordinates make mistakes, but
to admonish them calmly instead. Anger is but a display of emotions, whereas calmadmonishment is a form of educating.

(7)

On-site patrols by upper management
Whenever there is any major engineering project at the work site, before the start of theengineering work, upper management personnel go to the worksite to issue advisory8

instructions concerning safety and quality. In addition, safety patrols are dispatched to
the worksite about twice per year. The advisories issued at the worksite mainly focus on
the assurance of safety and quality discussions. Even the employees of fourth and fifthtier subcontractors take part.

(8)

Expectations for peer reviews
We believe that inadequacies exist in IHI safety culture activities, and expectations forthe current peer Review are for guidance in these areas. We also hope that good practices
in use at other companies will be shared.

8. Synopsis of Review Results
A synopsis of the Review results is as follows.
Adhering to the IHI administrative concepts of "Promoting Social Development throughEngineering Technology" and "Human Resources Comprise the One and Only Asset," andbased on the idea that the assurance of nuclear safety by a power plant manufacturer is theforemost administrative policy to be emphasized in quality, the Fundamental Policy of theDivision and Quality Policy of the Division were formulated, and in the drive for assuranceof safety, reliability, quality, and engineering expertise, it was confirmed that employees,
including those of contractors, are making efforts in this regard.
Over a long period of years, efforts have been made to promote a corporate culture ofemphasis on quality through education carried out separately according to each stratum(training for Senior Managers, training for managers in which the Senior Manager of the
Nuclear Power Division also participates, and for training for ordinary employees) and TQM(Total Quality Control) activities, and as one part of that, the endeavors in campaigns to
reduce the ratio of defectively welded joints is paying off.
Furthermore, in regard to endeavors toward corporate ethics, in light of the company-wide
endeavors to spiral upward toward an even more robust compliance structure, campaigns
continue with the objective of putting problem solving into practice with the participation of
all members of the Nuclear Power Division as a new campaign launched this fiscal year toreform awareness "Team IHI Campaign -- vivacious IHI."
As the concrete result of the Review, it was confirmed that steady progress is being made9

in the implementation of (1) thoroughness of policy management by the Senior Manager ofthe Division at the workplace level, (2) progress in the campaign to reduce the ratio of
defectively welded joints, (3) establishment and execution of the action program for passing
down expertise, (4) personnel training program for new employees, (5) technical retention
and succession by means of "expert worker system" and "key personnel system," and (6)technical standards (QOT) committee activities and the like.
However, further improvements are still desirable in the areas of (1) further raisingawareness of nuclear safety culture, (2) even greater utilization of data collection andanalysis, (3) explicitly stating reasons for changes when in-house regulations and the like arerevised, and (4) effective use of a uniform management system for non-conformity events.

Six concrete examples of good practices and four suggested improvements were elicitedthrough the Review results, and are listed below.
Note, however, that the suggested improvements are not necessarily matters that need to
be dealt with immediately from the standpoint of nuclear safety.

8.1 Good Practices(Organization & Management)
・ Thoroughness in communicating of policy management by the Division Senior
Manager at the workplace level
The Senior Manager of the Nuclear Power Division himself conducts opinion
exchange sessions regarding the setting of objectives separately for each hierarchicallevel (training in accordance with hierarchical stratum) including the strata ofdivision managers, managers, and deputy managers for the purpose of achieving
thoroughness and objective management of the Nuclear Power Division Senior
Manager policies for each fiscal year. Since fiscal 2006 this has been extended tothe staff (persons in charge) level, and efforts have been shifted toward activities inthoroughness in policy management and communications efforts.
・ Progress in the campaign to reduce the ratio of defectively welded joints
A welding quality committee has been established within the manufacturing
division, where a target management value has been set for the ratio of welding10

defects, and every month, the causes of welding defects are analyzed andcounter-measures are discussed. What is more, this has been taken up as a TQM
activity, and welding work KY sheets have been brought into use in the long-term
improvement campaign endeavors and favorable results are being achieved.

(Education & Training)・ Establishment and execution of the action program for passing down expertise
The current state of technical prowess is analyzed every year in the Nuclear
Power Plant Engineering Department, and based on that analysis, a priority field is
decided on for the passing down of technical expertise, an action plan for the passing
down of technical expertise is settled, and the state of progress is evaluated on aregular basis. If there is no progress being made, the action plan is carried over tothe following fiscal year and continues to be implemented until the expertise isreliably passed down.
・ Personnel training program for new employees
A "new employee training record" is created for each individual new employee,
and a three-year concrete training plan is established.

In addition, training

instructors who undergo a company-wide boarding-house style training course for
instructors are assigned on a one to one basis to new employees so that they directly
coach the new employees in the performance of work duties over the three-yeartraining period.
・ Technical retention and succession by means of "expert worker system" and "keypersonnel system"
Two systems have been established: there is the "expert worker system" forwelding work and work-site technical skills and the like, and for welding expertiseand other forms of expertise there is the "key personnel system," and lists have beendrawn up of all the personnel in the company who possess such technical andtechnological skills. The company is striving to pass down expertise by having
personnel who have been designated under the "expert worker system" and "keypersonnel system" as possessing technical and technological expertise provide
guidance to the next generation.

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(Design & Manufacturing)・ Technical standards (QOT) committee activities
Inter-departmental working groups have been established across multiple
departments to deliberate on common technical standards for materials, vibration,
structural design and the like, and in addition to proactively discussing revisions oftechnical standards tailored to the progress in technology, they strive to disseminate
the newly established technical standards.

Also, all technical standards are inprinciple reviewed once every three years.

(Human Error Prevention)
None in particular

8.2 Areas for Improvement(Organization & Management)
・ Further raising awareness of nuclear safety culture
It was confirmed through interviews with personnel having connections with the
manufacturing division that there is a sense of pride in the production of nuclear
products, but in the case of a few personnel, it was noticed that there seems to behardly any distinction for them between nuclear plant items and ordinary chemicalengineering products.

At the Yokohama Machinery Works, quality control

management for nuclear products is substantially applied uniformly across the board
to all products, except for welding management and inspection, even including
chemical engineering machinery.

This practice, however, carries with it thepotential risk that by applying nuclear products quality control uniformly tochemically engineered products, it could lead to bringing the level of nuclear
products quality control down. Recognizing this as a potential risk, it would bedesirable to devise some scheme for maintaining and further improving awareness of
nuclear safety by all concerned personnel.
・ Even greater utilization of data collection and analysis
On the matter of collecting data on examples of trouble at other companies and12revisions of laws and the like, it was noted that the data collected by IHI consisted ofdata provided by power companies and customers. It would be desirable to take amore assertive and active role in acquiring data so that information that might
possibly affect IHI's own business will not escape notice.
・ Explicitly stating reasons for changes when in-house regulations and the like arerevisedAs for revisions to regulations that accompany remedial actions in cases of
non-conformities, there are some for which the reasons for the revision are not madeexplicit. It is very important in order to convey proper understanding that the reason
for the change was to amend an incident of non-conformity, so therefore, it would bedesirable to make reasons for changes to rules and regulation explicit, or cite bookreferences and the like.
・ Effective use of a uniform management system for non-conformity events
A system exists for the uniform management of non-conformity events and it ismade use of from the standpoint of management, but it cannot be said that use isbeing made of the system on the higher plane of analyzing non-conformity eventsand deliberation on wide-scale policies. Hereafter, it would be desirable to giveconsideration to making more efficient use of the system.

(Education & Training)
None in particular(Design & Manufacturing)
None in particular(Human Error Prevention)
None in particular13