trust& Quality book 2014
3 trends affecting our business
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information Decisions are based on the best information and advisors
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Sustainability Sustainability requirements trend harder
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digitalization Digitalization affects the way we work and live
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Our way of assessing our customer’s products, assets and operations, and integrating these results, creates critical information into our customer’s decision making. This is our business idea.
Sustainability requirements open up new opportunities for what we can do to benefit our customer’s business. They also inspire us to rethink how we can work more safely and smartly.
Digital field techniques enable us to catch more comprehensive data. Digital systems make us more efficient in delivering the results to our customers.
We operate in 3 segments
Industrial segments
Real Estate, Infra & Construction
Component manufacturing Investment projects Operation and maintenance
Construction products Construction projects Maintenance and lifecycle
Services & Trade Sustainability Health & Safety Quality
1,400 experts Things we do: PAGE 10 Responsibility for foods
PAGE 22 Decision-making essentials
PAGE 11 Minimizing shutdowns
PAGE 23 Restoration of the Katarina elevator
PAGE 14 Lifetime assessments for boilers
PAGE 23 Boosting demands for higher contruction safety
PAGE 15 Inspecta health checks for oil tank
PAGE 24 Optical monitoring provides real-time information
PAGE 18 Cooperation with the world’s biggest pulp mill
PAGE 26 Improved safety and quality through training
PAGE 19 Power plant partnership
PAGE 26 Developing occupational safety
PAGE 20 Nuclear power plant inspections
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Flow officers creating a safe and rewarding working place
Competence and motivation of personnel are the main drivers for service quality and financial performance. This requires training and development, health and safety, and equality among all our experts, to be spurred by flow mode leaders and colleagues.
Sound business from financial and quality standpoint
Financial performance creates the basis for running a sound business. It correlates well with the quality of customer service and feedback. In our testing, inspection and certification (TIC) branch, integrity is also an inherent part of service quality.
How we create
Sustainability In 2013, our former Swedish country manager was asked to conduct a study on our sustainability practices in different Inspecta countries. Furthermore, three young students from Finland were hired to prepare their master thesis on sustainability. Both of these studies were based on international guidance on corporate responsibility and sustainability. By conducting interviews with our experts, managers and customers, these studies brought up the importance of financial and quality performance, communication with customers, leadership practices, and energy efficiency. These studies lead us to describe our sustainability policy based on the above-described four principles. Net sales Mâ‚Ź Personnel (Total FTE) 8.0 151
8.5 147
98
99
14.7 248
17.3 250
19.9 294
00
01
02 4
25.0 289
03
31.5 355
04
41.1 458
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Open minds to new sustainability opportunities
Our services contribute to the sustainability of our customers’ operations and the society as a whole. By keeping our minds open together with our customers and authorities, we can constantly expand our service offering and value.
Mobile experts working and travelling energy efficiently
Our environmental influence is dominated by travelling and offices, or in other words, use of energy. We can work more sustainably by utilising new ICT technology for mobile work and communication.
1,400 experts 168.9
174.0
176.1
147.4 129.7
126.1
116.5 106.6
935
1,012
06
07
1,213
1,191
08
09 5
1,326
1,383
1,405
1,428
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CEO
Greater sustainability with right information nspecta’s business idea is to generate information critical to our customers’ decision making. With the right information, our customers can improve the quality of their products and services, the health and safety of their employees and assets, and the sustainability of their business operations as a whole. All this information is generated by thousands of testing, inspection, certification, consulting and training assignments. The end result is a more sustainable society and a stronger economy. Sustainability is in the core of what we do but also how we do it. In this Trust & Quality Book 2014, you can read about the value of our work and about the thoughts of our people. We are proud of both the external results and the internal sustainability principles guiding our work. External results can be seen through three main customer segments: industrial, real estate and services. Our internal sustainability policy, in its turn, is guided by four principles: sound business, open minds, mobile experts and flow officers. You can see this book as the first one in a series reporting our work on this front. During the next years, we aim to go deeper into our sustainability performance, while in this year’s book, we want to focus on our stories. Before doing this, let us summarise how Inspecta Group has been doing for the past two years.
In all the seven Inspecta countries, we are either the market leader or one of the leading companies in the field. Our long-term customer relationships are a sign of deep confidence, and we are constantly widening our service scope to support our customers in all possible ways. Our organization is ready for new challenges and we are again getting back to the strong growth track. We see opportunities in all main customer segments. Within the industrial sector, we want to develop our services to make our customers more competitive in running their process plants and manufacturing lines. In addition, we want to get early into major investment projects to control the quality and risks, and thereby create justified feelings of safety for the investors. In the real estate and service sectors, our field is developing fast with new inspection services, monitoring techniques and assessment targets. Both legally based inspections and customer tailored special assignments are important. We operate mainly in our home region around the Baltic Sea, but many of our customers are global players asking us to support the delivery projects also globally. These are great news.
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New market opportunities
Our brand is based on our competent and committed personnel, the best professionals in our field. Consequently, we also need to be the best employer with excellent working conditions, best development opportunities, and most interesting market. In other words, we need to sustain our long-term success with the right kind of leadership practices.
Best working environment
Recent business performance Our operating environment has been fairly challenging due to industrial market development, and therefore our net sales levels have been slightly off our growth targets. In 2013, we reached 176.1 million euros, slightly higher than the 174.0 million euros in 2012. Growth was slow in Finland, Sweden and Norway, whereas the Baltic States and Denmark developed well. Profitability of Inspecta Group was improved in 2013, leading to an operating profit of 18.7 (2012: 18.1) million euros before nonrecurring items. Inspecta Group expanded its operations rapidly in the time frame 2005-2010. Originally Finnish operations were first expanded to Latvia, then Sweden, Estonia, Norway, Lithuania and Denmark. Expansion occurred mainly through acquisitions, leading to integration needs in all seven countries and at the group level also. During the past few years, we have been focusing on building the foundation for a common platform. We are becoming a unified company with services based on strong local presence, well run country organizations, as well as shared values and a strong brand.
is a true demonstration of the strength of our people. Our biggest thrill is of course a happy customer, relying on us and creating the future for our work. It is my pleasure to thank all Inspecta people for what we have done and how we are doing it – and our customers and partners for giving us the opportunity to show what we can. Sustainability can only be generated if the motivation and energy levels are high. I hope you enjoy reading our stories!
This Trust & Quality Book 2014
Kari Aulasmaa CEO, Inspecta Group
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Kari Aulasmaa, CEO. “Inspecta’s business idea is to generate information critical to our customers’ decision making. The end result is a more sustainable society and a stronger economy.”
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Our internal sustainability principles
Mobile expert | FL0W officer | open minds | SOUND BUSINESS
Mikko Nurmela:
“Smart Mobile is best for our customers” Inspecta’s Mikko Nurmela is from Finland’s Lapland. Lapland is gorgeous landscapes, untouched nature – and very, very long distances. The locals, however, never complain. “For us, nothing is far away in Lapland. If the road takes me where I need to go, the distance is just right,” Nurmela laughs.
in the pilot project of Inspecta’s new Service Max system. Service Max delivers customer information to everyone, from inspectors to the sales force.
Inspecta professionals like Mikko Nurmela need to be mobile. During one day, our experts’ total driving kilometers equal a trip around the globe. Mobility is a key aspect of Inspecta’s service – along with taking sustainable and environmentally sound decisions. Nurmela feels Inspecta does both: its customer service is mobile and it makes the right sustainable choices for tomorrow.
“In the field, Service Max allows us inspectors to save time and paper, since we can input all the data directly into the system using a tablet. It also allows mobile experts to optimize their driving to an even greater extent than before,” Nurmela explains.
“I can handle inspections all around Lapland. I am often on the road 5 days a week and usually, on a typical work day, I’ll drive 250 to 300 kilometers. Last year that amounted to 35,000 kilometers of driving on the job.” Nurmela’s job requires mobility, but he is confident that he is not wasting natural resources or causing unnecessary pollution. He has always been very conscious of making the right, green driving choices. In 2014, Nurmela participated
“Service Max shows all the open orders in an area, and this ensures that we never drive more than is necessary. Furthermore, the system sends information directly to billing, updates the inspectors’ calendars and keeps everyone up to date on customer information. I, for instance, see straight away if a client is a contract client or not, and as soon as I conduct an inspection, customer service and sales also have the information.” ”Mobility is a necessity in our business. Smart Mobile is what we strive for – as I see it, we are well on our way.”
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Intro
Competitive Industries: Processes
Keeping the wheels turning P
rofitability and competitiveness of companies operating in process industries are determined, above all, by their success in keeping their production running uninterrupted as much as possible by minimizing planned downtime and avoiding unexpected downtimes. Optimizing the lifetime usage of production equipment also has a significant impact on long-term profitability. In addition to these production-related issues, the safety of people and the environment is essential. With reliable information, skilled analysis and high-quality consulting, we at Inspecta help our clients to reach their goals in all of these areas. Most process industries, such as, energy, power, oil, gas, chemical and pulp and paper are all among our clientele. We provide them services and expertise to improve their competitiveness while at the same time promoting responsible business models. Our comprehensive service portfolio includes measuring, testing, monitoring, inspecting, verifying, controlling, certification and auditing services. We also provide consulting, technology, and training services. New innovative ideas are constantly needed. Together with our customers, we systematically develop new working methods, applications and services to better meet the current and future needs of our customers. By providing the right information and analysis we help our customers to plan and implement their maintenance operations for maximized uptime. When we succeed, our customers’ processes are not just safe and sustainable. They are also highly competitive. Lasse Øvreås
Country Manager Inspecta Norway
SEE PAGES 10 –11
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Minimiz shutdow
Responsibility
for foods
To protect a company’s daily operations, errors and defects need to be detected as early as possible,
major shutdown or annual maintenance of a facility usually entails several million working hours, thousands of people and a short time frame. To minimize the economic costs, careful planning and preparation before the work gets under way is crucial. A shutdown of a large corporation is a major undertaking, and most companies need to outsource the work. Inspecta is involved from the beginning with the planning work through to the end stage, carrying out the required tests, inspections and measurements. Inspecta works with its client to plan the project schedule, inspection targets, testing and measurements, and advises on additional resources, special methods and expert services that might be required. The parties jointly compile history and event data on the most recent operating period, and plans for repairs and modifications. Comprehensive planning from the start is vital because the shutdown must go smoothly without missteps or failures. Inspections often require shutting down all process units, but the company must continue to function. All
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especially when it comes to food industry. n the food industry, occupational safety is a matter of pride, and guaranteeing product safety is vitally important. Well-planned and implemented inspections are a crucial part of taking responsibility for business. A Finnish food industry company chose Inspecta as its partner. During the last two years, all of the client’s inspections have been centralized with Inspecta, and they use a wide range of Inspecta’s services. By centralizing all inspections with a single provider, the client has gained cost savings and clarity to its inspection operations. The difference is clear. Previously, as the client company collaborated with as many as six or seven inspection providers, inspections were sometimes excessive. The field for inspections was scattered, and sometimes overlapping. At worst, one company came to inspect one week, and a representative from another company did the exact same inspection the next week. In order to eliminate inspections overlap and make the field clearer, the company established a policy of centralizing inspections with a single provider. The aim was to choose a provider of the best possible quality and performance who understood the client’s values. Inspecta made an impression with its comprehensive range of services and expertise. Jointly created new practices have provided the client with substantial operational and financial savings.
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A successful shutdown requires. expert personnel who can work. independently, mesh the complicated. and diverse pieces of the project, and. have excellent communication skills..
zing wns inspections are conducted in accordance with legal obligations. During the process, Inspecta also conducts a variety of tests and measurements to collect current data on the condition of equipment. In a short time – typically one month – numerous equipment is serviced and modernized, and spare parts replaced. Inspecta writes a final report outlining the condition of equipment, upcoming repair needs, and any additional inspections needed. If Inspecta is the turnkey provider of the shutdown work, it ensures that all of the subcontractors also maintain Inspecta’s standards. Inspecta is also responsible for scheduling any additional work that may need to be done and updates progress reports on the operations. With precisely planned and well managed shutdowns using the latest inspection techniques, Inspecta achieves optimal cost efficiency and preparation for future contingencies. A successful shutdown requires expert personnel who can work independently, mesh the complicated and diverse pieces of the project, and have excellent communication skills. In this, Inspecta and its outstanding people excel.
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Our internal sustainability principles
Mobile expert | FL0W officer | open minds | SOUND BUSINESS
Lotta Sanfridson
“We are here for you” Business Unit Manager Lotta Sanfridson is in charge of Inspecta’s industry operations in southern Sweden and supervises a staff of some 230 professionals working mainly in inspection and testing. She is also a member of Inspecta’s Management Team in Sweden. “My job is to lay down the rails, so they can run the train,” Sanfridson explains. “In the end, we are all working to ensure the best result for our clients. If you look at my personal role, my direct customers are the Inspecta employees who should be able to rely on me to keep things running, so they can make sure our customers’ business has the best possible flow.” When looking to the future, Sanfridson likes to use a Swedish catchphrase: “Störst, bäst och vackrast – that is what Inspecta is. In English – the biggest, best and most beautiful. It loses a bit in translation, Sanfridson explains. It means that we are already the best, and therefore, we must keep lifting the bar, improving and renewing how our clients view safety. Inspecta is a driving force, we create a positive change,” Sanfridson says. “In essence we are the biggest, we are the best and we never sacrifice quality for extra profit. Of course, we are interested
in doing good business and seeing a profit, but we do not make shortcuts just for the money,” says Sanfridson. Sanfridson says if a client neglects proper safety in a project, manufacturing or with equipment, Inspecta actually makes more money, but it would violate Inspecta’s business ethics. “This is what I always underscore with my employees: we want to be our clients’ natural choice as a competent partner. They should contact us when they have problems in their plant or early on in a project, so we can help them to find the best solutions, or to ensure that everything is done correctly right from the start. This way we help them save money, and we can be judged on delivery rather than costs. We both might see a little less profit on a specific assignment, but more importantly, we know that together we are creating a better, more sustainable, and safer future for everyone.”
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Intro
Competitive Industries: Manufacturing
Quality is everything M
anufacturing companies are today operating in an increasingly complex environment. Both resource and product markets are growing more and more international and competitive. Supply chains often stretch over national boundaries and involve a large number of subcontractors. To remain competitive, manufacturing companies must be able to function efficiently, produce high quality products and serve their customers with precision. Inspecta is there to help them succeed in those endeavors. With the resources of our international Group, we are well aware of the needs of all sizes of manufacturing companies, and we can support them in all phases of their operations. During the planning and construction phase of a plant, we co-operate with plant vendors, system suppliers, component manufacturers and engineering companies. During production, our testing, inspection, certification services and calibrations are essential to keep manufacturing running smoothly and the quality of products high. With the help of our services, our customers can ensure the quality and profitability of their production as well as the safety of their staff and the environment. A significant share of the demand for our services is based on industry standards and requirements. Demand is, however, increasingly generated also by our clients’ desire to improve the quality of their products, delivery processes and documentation. The quality improvements generated with the help of our services raise our customers’ competitiveness, and their customers’ satisfaction. This then creates a new foundation for more growth for our customers. Jacob Lundberg
Country Manager Inspecta Sweden
SEE PAGES 14 –15
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Lifetime assessments for boilers Inspecta has developed.
life time assessments for. boilers. These are usually. done during maintenance. outages to eliminate. production downtime..
or a life time assessment, boilers are subjected to detailed analysis to review their condition, any possible damage and its severity, and components requiring maintenance or replacement are surveyed. Boilers have many different components that are exposed to great stress under high pressure, and therefore, their condition needs to be assessed. A comprehensive analysis and study is carried out in accordance with the customer’s choice, either for all of the power plant’s boilers or limited to a certain group of boilers, typically the older ones. Inspecta has developed new techniques allowing
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us to scan all boiler wall panels instead of performing only sample testing. Lifetime assessment is important for older plants particularly, as accurate information on the condition of the boilers are needed to avoid operational disruptions due to boiler failure. Knowing the condition of the boilers makes it possible to plan, budget and schedule upcoming investments. An analysis makes it easier to avert accidents or dangerous situations that might be caused by boiler failure. It is difficult to visually monitor the progress of corrosion in boilers. Detailed inspections and even laboratory analyses are required to know the condition, and then be able to estimate when to service or replace the various components.
Sweden:
Inspecta health checks for oil tank Storage tanks and their components are under stress from several factors from our customers’ process environments: contents of the tank, weather or operating conditions can lead to leakages that could pose a danger to people and the environment. To keep the container intact and carry out the right maintenance at the right time requires extensive expertise and accurate information from regular inspections.
nspecta is the only company in Sweden licensed to use SLOFEC™ a German scanning system based on eddy currents in combination with induced magnetism. The method is fast and reliable. Inspecta prepares the work by using computer software to draw up a plan of the area to be examined. Another important aspect of our work is to calibrate the scanner and set the signal from the sensors using a reference sheet with preset errors, such as, leakage damage of a thicknesses of 25 %, 50 %, and so on. A crack across the plate activates all sensors. An important advantage of the new scanning technology is that the sensor signal is analyzed in real time. One can immediately see on the computer screen where and the extent of possible damage. The overview shows trends, such as, the location where water run-off has occurred and where damage is located, which makes it easier to find the causes of any corrosion. The tricky thing is to get completely over the skin because of the radius of curvature makes that complicated. That ‘dead zone’ is reduced because the scanner’s handle
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can be rotated. In addition, the thermal impact of the joints makes the signal difficult to interpret, so we always carry out a manual measurement of any critical zone. Inspecta checks storage tanks, boiler tubes and pipes (even when hot) for localized damage in many locations that would include tank depots, paper and chemical industrial sites, usually for repeat customers.
SLOFEC™ (Saturation Low Frequency Eddy Current) is a rapid technique for non-destructive testing. It is based on eddy currents induced in the material under examination and then amplified using a unidirectional magnetic field. When damage occurs there is an increase in the magnetic field density in the remaining metal, which the sensors record as a change. Both sides of the material can be examined due to the separation of the signal phases. The results are analyzed in real time and reported on a color scale. SLOFEC can be used on hot surfaces and with both ferromagnetic and non-magnetic materials, from carbon steel to duplex stainless steel.
Our internal sustainability principles
Mobile expert | FL0W officer | open minds | SOUND BUSINESS
Julija Solovjova
“Every day is a great learning experience” Julija Solovjova works as a Financial Accountant Assistant at Inspecta’s Vilnius office in Lithuania. A recent university graduate, Solovjova joined Inspecta in September 2013. “My work at Inspecta is very rewarding. I was recommended for this position by my final thesis supervisor at Vilnius Business University. I work side by side with an experienced Financial Accountant and professional advice and guidance is always available. Like all new graduates, I came to Inspecta with a lot of theoretical information and very little practical knowledge. Here, every day is a great learning experience and I am becoming more and more independent in my work,” Solovjova says. As a student, Solovjova was equally interested in finance and communication. At Inspecta, she says she is getting the best of both worlds. “I am fluent in three languages: Lithuanian, Russian and English. Communication is an important aspect of my job, as Inspecta is an international company and we work in close cooperation with, for example, the accountants and business controllers in Finland. The main purpose of my job is to sum up and show business results. Our work communicates the value that Inspecta creates for customers,” says Solovjova.
Solovjova knows the value of Inspecta’s work; the numbers tell the story. “Our work is needed. Inspecta is an employer that makes me proud. People need to be safe at work, safe everywhere. The future must be built in a more sustainable manner. Inspecta helps companies achieve this.” Inspecta’s slogan, Trust & Quality, gets full approval from the new recruit. “For me, Trust & Quality says it all. It explains the value that we create for our customers. As a new employee, I am happy to say Trust & Quality also summarizes what Inspecta offers employees. It is a reliable and caring employer that provides employees with a great learning environment, encouragement and knowledge sharing – and extremely interesting career opportunities in the long run. I am very glad to be a part of Inspecta.”
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Intro
Safe investments
Prepared for the unforeseeable S uccess usually follows on from taking the right precautions. Properly performed risk assessments are the basis for success whenever important investment decisions are made. The management of sourcing and quality risks related to investments is increasingly important in Inspecta’s work, and is a fine complement to our traditional consultancy services. We help our customers to find and avoid the critical risk factors of their investment projects. Working in partnership with suppliers, sub-contractors, operators and authorities, we see to it that all phases of investment projects proceed as planned. We have long experience of investment projects in many different sectors. The most recent have been domestic energy investments in Finland. Through our international network we are also frequently involved in large international investment projects. A recent example is the South American pulp industry. We collect the necessary information for making investment decisions, do risk analyses and life cycle calculations, evaluate potential suppliers and train them, and perform quality assurances during construction. Once in operation, our in-service inspections provide important data for ensuring safety and increasing the life span of the equipment. In doing this, we help our customers to build and operate safe, efficient, reliable and sustainable facilities. The safety of an investment project can be understood to include successful construction and delivery, operational reliability and physical safety. We provide assurance for all these aspects of investment safety and help our customers make even Stefan Petersson safer and less risky investments in the future. CFO
Inspecta Group
SEE PAGES 18 –20
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Uruguay:
Pulp nonfiction
The world’s biggest pulp mill is a boon to Uruguay – and Inspecta For the past two years, Punta Pereira in the region of Colonia in Uruguay, about a 60-minute ferry ride from Buenos Aires, Argentina, close to the River Uruguay delta, has been the construction site for the world’s biggest pulp mill. he 1.9-billion-dollar project comprises a state-ofthe-art pulp mill, a port and a biomass-based powergenerating unit built in a free trade zone, and employing thousands of people during construction, and another 500 once completed. Estimates are that the mill will boost Uruguay’s GDP by 2.5 percent with production volume projected to be 1.3 million annual tons. For its part, Inspecta has been responsible for NDT inspection and quality control in the pulp mill. The Uruguayan company is a partnership of of a Finnish-Swedish and a Chilean company. The main subcontrators were from Uruguay, along with dozens of other non-Uruguayan companies, like Inspecta. The Inspecta team numbered over a dozen experts. Inspecta also partnered with a local company for smooth running operations.
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Jukka Verho, Sales Director. “Language skills are always important. In Uruguay, having Spanish speaking people was key.”
“We employed over a thousand people. In big, international projects like this, we always map our resources when we make an offer. In Uruguay, having Spanish speaking people was key. Language skills are always important, but especially when we work in countries that are outside the EU,” says Jukka Verho from Inspecta. Inspecta usually enters the project as early as is feasible, but the actual quality control work begins when building gets under way. The main work starts when the clients begin assembly of the mechanical parts of the building. Inspecta does the NDT inspections using ultrasound and radiography by controlling quality and monitoring the installations. Inspecta determines, in consultation with its client, who will be responsible for NDT inspections and then puts out bids. The company’s own quality manager is on site, and uses partners for quality control. Inspecta’s representatives regularly attend quality control meetings. Inspecta is highly respectful of other cultures, but there can still be some surprises with any cross-cultural project or varying conditions. In Uruguay, there were storms and strikes, and problems with getting the necessary permits. And with the country’s high employment, it was not always easy to find workers. But those challenges are now behind us. The project was finished after the final test runs done under the agreed criteria. Once the mill’s productivity is up to speed as agreed, the warranty kicks in. There will continue to be regular inspections during the lifetime of the mill too.
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Estonia:
Power plant partnership nspecta is a partner in a project to test the safety and quality of a large power plant in Estonia to supply two 300 MW units for a fossil fuel power plant based on Circulating Fluidized Bed (CFB) boiler technology. Located in Narva, the power plant will be fuelled with local oil shale. Inspecta’s part of the project includes a first unit of 300 MW and an option for a second unit of 300 MW. The new power plant will supply Estonia’s domestic electricity consumption and will ensure Estonia’s compliance with the EU LCPD emissions directive by substantially reducing emissions. “The power plant must supply and satisfy demands for safety and quality. Inspecta will ensure that the plant is safe to operate, satisfies the owner’s expectations, meets documentation requirements, and is built on site to meet all standards for pressure equipment and electrical installations,” says Tõnu Roosaar, Inspecta Country Manager in Estonia. The production systems are complex and disastrous breakdowns can occur if the systems
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are not properly built, monitored and tested. New innovative ideas will be needed to meet the increasing demands for greater reliability and safety. “Inspecta Estonia is small compared to big players in Europe but strong and flexible operator in Estonia. Inspecta has comprehensive knowledge and understanding of local requirements and has implemented EU and internationally accepted approaches to the safety and quality as well. With good cooperation with other Inspecta Group companies we were able to build up a team of experts quickly so to be able to satisfy sudden increase of client needs. Company is currently working in close cooperation with its client,” says Roosaar. Under the terms of the contract, it is Inspecta’s responsibility to ensure that the power plant meets EU directives and standards related to pressure equipment and electrical installations. Inspecta is in charge of NDT testing of the CFB boiler as well. Inspecta will do all the local inspections of the lifting equipment, machinery and gas installations too.
Tonu Roosaar, Country Manager. “Inspecta is a strong and flexible operator in Estonia.” 19
A high bar to clear
Nuclear power plant inspections t was not an easy road for Inspecta to receive approval for NDT testing of the most critical components at a nuclear power plant under construction. “First, the company had to pass tests that included qualification of both the inspection method and the inspectors. For the purpose of certification, the licensees provide initial data on the object to be inspected, including materials, shapes, surface quality and temperature, as well as the inspection conditions, the volume to be inspected, fault types to be found and the smallest magnitude of fault that can be reliably detected,” says Ari Kaarnalehto, Inspecta’s NDT Specialist. Using the initial data, Inspecta started laboratory testing and prepared inspection instructions. The inspection instructions and the relevant parameters need to be justified technically, stating the reasons for choosing the equipment, probes and parameters used in the instructions. Once the inspection instructions and technical justification are complete and approved, the operation is tested with open tests. This involves inspection of a test piece that corresponds to the actual object, but with faults that are known in advance. The test is supervised by a qualification body whose instructions are strictly observed. An approved test result requires that all of the faults are found and correctly dimensioned. This open test qualifies the inspection instructions and the equipment. After that, a blind test is conducted to qualify the personnel. The instructions are valid until otherwise notified, but personnel certification is for five years, after which they must requalify. “The qualification process for the instructions and personnel, from receiving the initial data to completing the instructions, takes from six months to two years,” says Kaarnalehto. “Certification is not required for
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Ari Kaarnalehto, NDT Specialist. “The smallest magnitude of fault can be reliably detected.”
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Inspecta’s competence, experience. and maybe the price-quality. ratio convinced the client.. Before initiating the project,. the client scrutinized Inspecta’s. competence and technology..
all inspections of a nuclear power plant. For some inspections, normal NDT qualifications according to the EN standard is sufficient.” NDT technology is used for the examination and inspection of nuclear power plants for periodic inspections and during annual outages when the plant is in shut down. During periodic inspections, objects are often subjected to a procedure called zero inspection that will be used as a basis of comparison for periodic inspection results in upcoming years. This is not the case with all objects; some facilities are subjected to ordinary NDT inspections during manufacture. The periodic inspections of nuclear power plants include examination of the pipeline butt joints belonging to the intake water lines and steam lines. Phased array ultrasound is used for this. The method is somewhat similar to the ultrasonic examinations used in medical imaging. The inspection uses sound waves, not radiation. In phased array ultrasonic examination, a crystal has 8 to 256 different parts that are used to accurately and reliably locate faults. The use of several crystals (oscillators) and the phasing of their delay times makes it possible to vary the angle and other properties of the sound, simultaneously using several angles. Computer-based equipment and mechanization also improve the reliability of inspection through the storage of results and computer-based analysis.
Intro
Smart cities
Analysis before action W
ith urbanization as a global megatrend, demand for smart city applications is rising. According to international estimates, more than half the world’s population will live in cities by 2025. Technologies that promote the safety, functionality and sustainability of urban areas will become increasingly important. Inspecta is actively involved in developing the intelligence of our living environment. Energy efficient buildings, construction quality, environmentally-friendly construction materials, elevator and escalator safety, reliability of fire-fighting equipment, load-carrying capacity of bridges – these are all important factors in the built environments that we inspect, test and monitor. We provide information and analysis for property owners and managers, construction companies, service providers, building products industry and authorities to guide their service and maintenance work and replacement investments. Our expertise is first rate, and we constantly develop our services and methods to be able to take advantage of and apply the newest technologies. Today, only a very small share of the life cycle costs of buildings and infrastructures goes to inspections and monitoring. We strongly believe that by increasing that share and using the information collected to prioritize maintenance actions, significant savings could be made. Turning around the traditional method of action first then inspection offers enormous potential for optimization. With the right kind of information, it is possible to determine what needs to be done and in what order. Resource constraints will make prioritization even more of a must in the near future. We expect our smart city services to become our fastest growing business Peteris Drukis segment. Country Manager
Inspecta Latvia
SEE PAGES 22–24
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Inspections:
Decision-making essentials
nspecta is responsible for statutory inspections of equipment, such as, lifts, cranes and electrical installations, as well as fire alarm and extinguishing systems. The inspections ensure the safety and availability of this equipment. Inspecta is an independent third party, and inspection quality is controlled through accredited systems compliant with the appropriate standards. The tool for predicting, budgeting and planning for maintenance costs is a voluntary service package: planned condition monitoring of lifts and escalators. For statutory inspections, equipment is reviewed according to a preset plan. The inspections cover regulatory requirements, while service companies take care of the maintenance of the equipment. In addition to safety, the owner of the equipment is interested in the life span and the right time for an overhaul. Inspecta inspectors assess the condition of the equipment, any need for modernization or replacement, and the urgency of taking action. The inspections and assessments related to the life span give the client a great deal of information to make the best decisions.
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Data synergy The inspection report serves as feedback for maintenance and gives early warnings. It is helpful in choosing, as an example, the lifts and escalators that need a more detailed condition analysis. The reporting data can also be used to support long-term decision-making. The data can be used to predict and get an estimate of upcoming maintenance costs. Inspecta’s capability to provide accurate data is a crucial part of the clients’ budget decisions. It supports planning and budgeting well in advance, and makes it possible to implement overhauls, modernizations and replacements at just the right time, leading to optimal prioritization and cost-efficiency. Inspecta’s professionals have years of wide experience in the patterns of wear and failure. Their insight provides real added value to the client. Fundamentally, it is a question of giving support to clients’ business operations and to keep the valuable equipment safe, reliable and efficient.
Lift inspector:
Lift inspector Heidi Kaartinen
is a newcomer to the industry. After graduating and working in electric power engineering, she wanted a more concrete and hands on job rather than theory and design. ”I work on site. Even though I have a lot to learn, I have noticed that this is an interesting sector that is easy to enter as a rookie. Our priority is that every site is diligently inspected.” The challenge of this industry, and a factor that makes this job so interesting,
is that there are lifts in operation of widely varying vintages and manufacturers. The number one priority for inspection is to ensure the safety of the lift. The lift’s safety equipment must operate so as to provide the utmost safety for its users and protect against any major failures in exceptional situations.” Safety is also occupational safety. ”When working on site, you must be able to assess risks and keep safety in mind. A lift has a lot of moving parts, something can get stuck – or you can get stuck yourself. Also, during an inspection you work with a maintenance company employee, so you must be able
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to communicate. To avoid accidents, you must be aware of your partner’s whereabouts at all times.” Besides safety, an inspector pays attention to maintenance quality. If a lift has had many faults, this will be shown on the maintenance log. In that case, one must consider whether the maintenance schedule is appropriate.” ”In my everyday work, I am involved with important matters. People’s safety is at risk. Also, the inspections allow us to make sure that the equipment is always in the best operating order. Property owners have a lot of money invested in lifts.”
Latvia:
Shopping mall tragedy leads to demands for higher safety
Sweden:
Restoration of the Katarina elevator he Katarina elevator has been a landmark at Slussen in Stockholm, Sweden, for 125 years and is a well-known silhouette on the city’s skyline. The existing elevator tower was built in 1935. The site is now under redevelopment and the foundations of the Katarina elevator are to be restored. There were worries that the steel used in the elevator tower had become brittle and would need to be replaced. Folksam, which owns the structure, and the City of Stockholm hired Inspecta Technology to examine the construction to help them make the most informed and best decision on how to proceed. “We have been able to ascertain that the strength of the material and design of the structure meets today’s high standards. Neither storms nor extreme cold have damaged this steel structure,” says Magnus Dahlberg, Senior Technical consultant at Inspecta Technology, who headed the expert inspection team. Magnus Dahlberg carried out the work with Roger Wibert and Jan Storesund, strength and material experts at Inspecta Technology. They conducted a life cycle analysis and a strength analysis of all the tower’s steel beams. They checked the durability of the materials and, using fracture
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mechanics analysis, assessed the structure’s ability to withstand damage. The tower passed with flying colours. The Katarina elevator has old rust protection in the form of lead oxide that provides good surface protection, but it can pose a health and environmental hazard if released into the air during removal. Jan Storesund found the perfect solution with a coating system based on antiquarian oil, which can be painted directly onto the existing lead oxide paint. It provides the modern surface with needed protection without needing to blast the dangerous lead oxide. Magnus Dahlberg and his colleagues showed the structure could be verified and documented as safe after their systematic inspection. That involved a thorough review of the entire tower through visual inspections and nondestructive testing of the most critical points before the foundation is rebuilt. The testing was done on site in the tower with magnetic particle testing and ultrasonic testing. From here on, normal testing done as routine periodic inspections will ensure the tower stays safe. ”The tower of the Katarina elevator stands safe and secure. The construction will last for very many years to come. At least a hundred years or more!”
Magnus Dahlberg, Senior Technical Consultant. “The construction will last for at least 100 years or more.” 23
On November 21, 2013, the roof of a shopping centre in the Latvian capital, Riga, collapsed, killing 54 people and injuring 41 others. It was a shocking tragedy and loss of life, and came after the building, finished in 2011, had won Latvia’s Building of the Year award. Just the day before the collapse, Inspecta had highlighted the importance of quality construction at the “Quality Assurance in Construction Industry” conference it had organized with the Ministry of the Economy and the Latvian Sustainable Building Council. While the cause of the disaster is still undetermined, Jelena Pekale, Inspection Manager at Inspecta Latvia, says that a more complete overhaul of the country’s inspection and construction standards is needed.
Jelena Pekale, Inspection Manager. “Inspecta Latvia plays an integral part in the development work.”
“Latvia has been a member of the European Union since 2004, but the government still hasn’t amended the old construction legislation to meet EU standards. For example, Eurocodes are still not mandatory for steel in Latvia. What we have is a mix of the old Soviet Union legislation and the European Union codes,” she says. Inspecta’s experts are participating in government working groups to get new legislation moving forward. After the tragedy, there has been a demand for better building safety inspections from both public officials and the general public. “Currently, the main priority in Latvia is the renewal and introduction of building regulations as well as quality assurance during the building process. That’s not possible to do without the participation of independent testing, inspection and certification companies, such as, Inspecta”, says Pekale.
Monitoring:
Optical monitoring provides real-time information ptical monitoring is an innovation developed in the late 1980s and taken into widespread use in the mid1990s. Inspecta’s technology partner OSMOS is the world’s leading player specialized in the condition monitoring of structures using optical fiber technology. The method is used for automatic and continuous monitoring of deformations in structural materials. These may be both static and dynamic rapid changes caused by external loads. A typical object for optical fibre monitoring is an ageing concrete bridge.
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Extensive and reliable Optical monitoring has significant advantages over point-type measurement systems. A long-extending optical fibre probe provides reliable information about changes in a structure across its entire length, and it may not be essential to achieve millimeterlevel precision in locating a fault. “If a sudden change is found in a structure, an expert will be sent to the site immediately,” says Leena Sarell-Kankaanpää, Product Manager for Inspecta. Optical monitoring of a typical bridge requires no more than four sensors. Compared to traditional methods, optical monitoring provides a temporarily more comprehensive picture of how the structure behaves. The system generates constant data on dynamic deformations at a frequency of 100 Hz around the clock. Since there are no breaks in measurements,
a reliable reference value of structural behaviour can be obtained. A wireless 3G connection allows alarms to be forwarded by SMS or email, or to a set IP address. “Optical monitoring can provide information on deviations that would not be detectable by the human eye for a long time,” says Sarell-Kankaanpää.
Wide-ranging application Optical monitoring is suitable for all structures and different materials. “The sensors used for monitoring the Eiffel Tower have operated without problems since 1993,” says Sarell-Kankaanpää. In new construction development, optical monitoring is typically used for supervising special implementations where structural rigidity needs to be verified at a low incremental cost. Optical fiber sensors are very durable with a long life and can be embedded in concrete structures. Most subjects of optical monitoring are old structures in need of condition monitoring. Hakaniemi bridge in Helsinki, Finland, for example, is reaching the end of its life span in regard to calculations, but optical monitoring has verified that the bridge is still in acceptable condition and is still safe to use. “Optical monitoring facilitates optimization of maintenance. Knowledge of the condition of objects allows us to direct our limited resources to targets where there is a concrete need. An old bridge may look ugly, but can still be in good condition. In that case, it doesn’t pay to make quick repairs
if they are not needed for safety reasons,” says Sarell-Kankaanpää.
more than data collection There are a total of 25 known applications for optical monitoring in infrastructure construction, the manufacturing industry and buildings. In addition to bridges, the most typical examples are containers, silos, masts, chimneys, bridge cranes and roof structures. Successful monitoring comprises a lot more than data collection. In order for the data to be useful, it must be combined with data analysis, continuous monitoring of limits, and well-scheduled actions. An example of raw data is tension, which is used in fatigue load calculations and life cycle assessments. “Tension is a commonly required quantity, but far too often it has to be roughly estimated, which can result in calculations that are inaccurate. Monitoring can provide reliable information on the actual object,” says Sarell-Kankaanpää. Optical monitoring and the data acquired with this method makes it possible to immediately detect the smallest changes and weak spots in structures, and corrective measures can be taken early and at a lower cost. The reliability and safety of the structure are secured, and this also allows for a safe extension of the life cycle. “The customer can be sure there will be no surprises, and no usage restrictions ‘just to be on the safe side’ need to be implemented,” says Sarell-Kankaanpäää.
Leena Sarell-Kankaanpää, Product Manager. “Customers can be sure that no surprises will occur, and no usage restrictions ‘just to be on the safe side’ need to be implemented.” 24
Intro
sustainable services
Better encounters with customers T he scope of sustainability is expanding, and this is particularly true for the growing service industries. A sustainably operating company has a comprehensive understanding of the effects and value of its activities for all of its stakeholders, and is managed responsibly to optimize the company’s endeavors for the long term. Inspecta’s offering includes expertise to assess, monitor, certify and develop the entire range of service sustainability. The quality of a service is influenced by internal and external processes. Management system evaluations, health, safety and security assessments and energy inspection are examples of areas where we help our customers to assess and develop their internal processes. Supplier audits and service quality assessments, on the other hand, involve external parties as well. Currently, the service industry is the only fast growing sector in the developed countries. With this growth trend, service companies are becoming more ambitious in developing their operations. For the time being, there are no common standards for services, but we expect European standards to be set down in the near future for different service areas, such as, elderly care or industrial services. We at Inspecta believe that the success of a service company is increasingly determined by how its customers feel about the service. When developing service operations, it is essential to learn which factors along the customer’s journey through the service chain carry positive feelings and which need improving. Sustainability goes hand in hand with creating positive emotions – a sustainable Timo Okkonen CCO service feels good.
Inspecta Group
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Lithuania:
Improved safety and quality through training nspecta Academy offers training events and seminars in different countries, with thousands of happy customers meeting our experts. In Lithuania, the Inspecta Training Institution assists companies in raising the skills of their employees and contributes to creating knowledge hubs. Trainees receive general and specific professional knowledge and develop their practical abilities. The main goal is to establish programs for senior management and staff to raise their professional qualifications. “Right now we have the possibility to organize training courses based on more than 100 training programs across Lithuania,” says Šarūnė Juknaitė, Qualification manager. Training services may be divided into three main areas: professional training, competence assessment, and qualification enhancement. Professional training is carried
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out in accordance with the licensed training programs, and professional competences are assessed by the accredited institution. Qualification enhancement, in its turn, involves seminars, courses and conferences on new subjects of interest to the professionals. The training team of Inspecta Lithuania has five regular members. Inspecta experts in other business units have many years of field experience and they are the trainers passing their knowledge and experiences to trainees in actual working conditions. There is also a large group of specialists who come from national institutions to offer their expertise. Professional training focuses mainly on training courses on the operation and exploitation of potentially dangerous equipment. Qualification enhancement primarily deals with the training of welding specialists,
Šarūnė Juknaitė, Qualification Manager. “Much has been achieved, but we are still in the process of growth and development.“
the organization of NDT training, and the understanding and application of EN Standards. The number of clients trained at the institution continues to rise. During the first year in 2012, the number of students and seminar attendees reached 3,000. In 2013, that figure was 6,000. Now the number of participants exceeds 25,000. “Much has been achieved within a very short period of time, but we are still in the process of growth and development. It is nice to be part of the Inspecta Academy family,” says Juknaitė.
Finland:
Developing occupational safety nspecta has helped a Finnish-based, international logistics company to implement a project to develop companywide occupational safety management that makes the company’s values integral to the daily work. A shift to services rather than products has resulted in more diversified internal operations. The management of occupational safety requires more extensive practical expertise and a comprehensive strategic view to apply management’s values and targets to every day work in an enterprise that covers several business fields. Occupational safety assessments are offered by a wide range of players, starting with the individuals who provide training. Inspecta became the partner of choice because it was able to provide a service palette for the entire company, from strategy to worker safety issues. The client has been very satisfied with the results, and the work continues. This is not a one-off project, but a long-term initiative for change. The project was implemented quickly, and there was high praise for Inspecta’s experts, particularly for their customer-oriented attitude and flexibility.
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Our internal sustainability principles
Mobile expert | FL0W officer | open minds | SOUND BUSINESS
Gerhard Wiklund
“tomorrow still excites me” Gerhard Wiklund’s story begins on August 4, 1965, when he got his first job at the local shipyard in Fredrikstad, Norway. In his early years, Wiklund bent ship hull ribs, rolled plates, and worked with the fitting and composition of small parts. Wiklund remembers his early days. “I worked in the day and studied during evenings and weekends. After receiving my degree, I was pleased to get increasingly demanding tasks.”
The future of Inspecta – and Inspecta’s customers – is in good hands. After decades of experience, Wiklund is still most excited about the future and developing testing to ensure world-class service to Inspecta customers.
In 1974, Wiklund conducted his first visual inspection. The rest, in Inspecta’s eyes, is history: after nearly 50 years in the shipping industry and over 30 years of experience in testing, Wiklund is a founding force in the testing business.
“The field of testing is evolving all the time, I find it invigorating. These days, my work week consists very much of talking to customers, answering their questions and helping them find optimal testing solutions. The importance of testing is ever increasing. In many fields quality testing is paramount to success.”
Considered one of the grand old men in the field by fellow Inspecta experts, Wiklund is a valued colleague, respected for his expertise and foresight. Wiklund’s career has included many inspiring advances in testing. Wiklund considers accreditation to be one of his main career highlights. “Another personal highlight has to be optimizing our reports for destructive testing. I have been working constantly with this issue, to ensure we deliver our customers the best service possible.”
“At Inspecta, we recently decided to invest in new CTOD equipment in our destructive testing laboratory. This will make us an even more attractive total testing supplier. I am eagerly looking forward to getting it in place and showcasing it to our customers,” Wiklund concludes.
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board
Members of the board Ad Verkuyten
“As the industry leader in providing support for our customers’ sustainability, we must ensure that we are always at the forefront of corporate responsibility in our own operations.”
“We want to be a responsible company supporting sustainable development by offering services and working methods to save the environment.”
Chairman of the Board Occupation: International Board Member Born: 11 August 1951 in The Netherlands Education: Masters degree in Economics and Master of Science in Chemical engineering Board member since 2007 Lauri Ratia Occupation: International Board Member Born: 21 May 1946 in Finland Education: Master of Science in Machine Construction Technical University of Helsinki, AMP Harvard Business School Board member since 2007
Lauri Ratia
Hannu Isohaaro Occupation: Board Member Born: 12 May 1952 in Finland Education: Master of Science in Engineering, AMP Insead 2003 Board member since 2007
Fredrik Karlsson
Kari K. Kallio Occupation: International Board Member Born: 10 April 1950 in Finland Education: Master of Science in Mechanical Engineering, Luleå University of Technology Board member since 2009 Fredrik Karlsson Occupation: Partner and Managing Director at 3i Nordic plc Born: 18 December 1967 in Sweden Education: MSc in Business Administration and Commercial Law from the Gothenburg School of Economics Board member since 2007
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board
“Everything Inspecta does contributes to the sustainability of the society and to the economy of each country where Inspecta is present.”
“Energy efficiency and environmental challenges must be taken into account more precisely when developing new services.”
“Global and open markets create new types of quality standards for products and companies. We ensure that our customers’ products and services meet today’s demands.”
Hannu Isohaaro Kari K. Kallio Ad Verkuyten
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History
From old times to new times nspecta originated from the 1995 government decision to separate the inspection operations of the State Technical Inspection Centre (TTK) from the authority duties. The Finnish market was deregulated in 1998, and TTK became Inspecta. First years of Inspecta were dominated by buildup of a service company culture and preparing for the growth in Finland.
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The first expansion outside Finland was a successful acquisition in Latvia. Another big step was taken a year later when Inspecta acquired parts of DNV in Seweden. Inspecta’s growth has been partially organic, but the greatest growth has come from acquisitions. Expansion has lead to operations in seven countries around the Baltic Sea.
1975 State of Finland founded Technical Inspection Centre (Teknillinen tarkastuskeskus TTK)
1975 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94
1977 Sweden formed the National Test Facility (Statens anläggningsprovning SA)
Denmark:
Private investigations About ten years ago, the Danish Working Environment Authority decided to privatize its inspections department. Jens Bruun had worked there for twenty years, and found himself in new territory. He founded a company of his own, and in 2010, Inspecta came knocking on his door to inquire about an acquisition.
“At that point we had about 25 employees and were looking for ways to expand. Our competitors in Scandinavia had hundreds, or even thousands, of employees,” says Bruun, now Country Manager of Inspecta Denmark.
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1994 SA acquired Materialröntgen, the largest NDT company in Sweden; new name SAQ was adopted
Jens Bruun Now Inspecta Denmark has 55 employees, a reliable reputation, and a lot of opportunities for growth. “We can grow very much in the next three years. Last fall we got new customers in the wind power sector, which is already a big industry in Denmark,” says Bruun. “At the same time, we have to be careful not to grow too fast. We have to make sure that we find the right people and can train them properly, and that takes time,” he concludes.
History
1998 Deregulation and free competition; TTK became the state-owned limited company Inspecta Oy
1995 TTK was transformed into a public utility and the authority status was removed
Timo Okkonen, CCO. “It is great to see all the time new moves in our branch. This creates dynamics in the market and within Inspecta.”
2002 Privatization of Inspecta
2000 Inspecta acquired Huber Testing, the largest NDT company in Finland 2005 Inspecta Latvia
2009 Inspecta Norway
2011 Privatization in Estonia
4 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
1995 Deregulation, Sweden.
1998 Deregulation, Finland.
2006 2007 Inspecta Inspecta acquires Estonia the main part of DNV in Sweden, doubling the number of experts
2010 Inspecta Denmark 2010 Inspecta Lithuania
Lithuania:
From 1 to 58 in 4 years Here are some key facts about Inspecta’s operations in Lithuania: 1, 45, 58, 2010. One is the number of employees they had in 2010 when they founded the local company. Forty-five is the rate of annual growth in net sales, and 58 is the current number of employees. Life in the fast lane
“We started from nothing in 2010, with myself as a minority shareholder,” says Mantas Andriuškevičius, Country Manager, Inspecta Lithuania. While the growth has been a stunning 40 to 50 percent annually,
Mantas Andriuškevičius Andriuškevičius says the process has just begun – and it is just that, a process. “We started with just a couple of service areas and have added new customers and new items to our portfolio, which now includes inspection, certification, testing, training, and consultancy,” says Andriuškevičius. “Our competitors are specialists in their niche areas, whereas our service range is the widest in Lithuania, so we expect similar growth in the future. We’re still a fairly small company, so there is room for growth,” he adds.
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Inspecta Group Oy P.O. Box 1000 FI-00581 Helsinki, Finland phone + 358 10 521 600 customerservice@inspecta.com www.inspecta.com
Inspecta is the testing, inspection and certification market leader in Northern Europe. Inspecta’s office network covers Finland, Sweden, Norway, Denmark, Estonia, Latvia and Lithuania. Annual turnover is about 180 M₏ with more than 1,400 experts.