Standard Procurement Procedure
Outline of Procedures (materials & equipment)
New VE Formulas
Outline of Procedures (construction works)
New VE Formulas
Registered Product VE Formula
- The registered product VE Formula is not intended for any specific project or program. It calls for accepting VE proposals for amendments to our specifications for products to be procured in the future and revising such specifications in accordance with acceptable proposals. The procedure offers a reward for each accepted proposal according to the amount of cost curtailment attained by the proposal.
- In principle, proposals adopted under this procedure will be disclosed and made applicable to other interested corporations.
- TEPCO does not pay the cost involved in the preparation of documents for VE proposals.
- The supplies who have already been registered with TEPCO as suppliers of the products covered by VE proposals shall follow the flow of procedure shown below:
Supplier
(Registered supplier) |
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| Submission of written proposal |
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| Receipt of notice of VE proposal acceptance/rejection |
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| Notification of VE proposal acceptance/rejection |
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If VE proposal is accepted:
(1) For type-designated product
| Submission of Registration Application Form |
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| Distribution of Registration Application Form and TEPCO specifications |
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| Receipt of Registration Application Form |
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The rest by the regular registration procedure |
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| Reward according to amount of cost reduced |
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(2) For other registered product
Receipt of notice of revision
(Revised and standard specifications) |
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Notification of revision
(Revised and standard specifications) |
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| Reward according to amount of cost reduced |
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Explanation of Flow
Submission of Written Proposal
Any supplier who desires to make a registered product VE proposal shall fill in the VE proposal form prescribed by TEPCO and submit it along with backing technical data, test results and other relevant documents to the Materials & Procurement Department of TEPCO. The VE proposal form is available at the Materials & Procurement Department of TEPCO.
Inspection of Proposal
TEPCO comprehensively inspects the proposal submitted to it in respect of technology, safety, cost, etc. to find whether the contents of the proposal meet our quality, function and performance requirements.
The inspection takes about six months to one year. Any irregularity in the data submitted or any delay in their submission may impede the examination, resulting a longer time of inspection.
Receipt of Notice of VE Proposal Acceptance/Rejection
TEPCO notifies the supplier whether the proposal has been adopted or not by a Notice of VE Proposal Acceptance or Rejection.
Submission of Registration Application Form and Receipt of Notice of Revision
If the proposal has been adopted, TEPCO revises the applicable standard specifications accordingly and notifies the supplier of the contents of such revision.
Where the proposal covers any of the type-designated products, the supplier shall fill in the "Registration Application Form" prescribed by TEPCO and submit it along with necessary documents to the First Procurement Reform (International Procurement) Group of TEPCO.
Reward According to Amount of Cost Reduced
TEPCO issues a designated or otherwise preferential order to the supplier according to the degree of contribution by the proposal, especially the amount of cost that can be reduced by it.
Model Flow 2
The suppliers who desire to begin doing business with TEPCO and to submit registered product VE proposals shall follow this flow of procedure.
Supplier
(Supplier who desires to begin doing business with TEPCO) |
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| Submission of Company and Product Information, Registration Application and Proposal forms |
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| Distribution of Company and Product Information Form, Registration Application Form and TEPCO specifications |
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| Receipt of Company and Product Information Form, Registration Application Form and written proposal |
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| Inspection of registration application and proposal |
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| Receipt of notice of registration and VE proposal acceptance/rejection |
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| Notification of registration and proposal acceptance/rejection |
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If VE proposal is accepted:
(1) For type-designated product
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No further procedure |
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| Reward according to amount of cost reduced |
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(2) For other registered product
Receipt of notice of revision
(Revised and standard specifications) |
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Notification of revision
(Revised and standard specifications) |
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| Reward according to amount of cost reduced |
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Explanation of Flow
Distribution of Company and Product Information Form, Registration Application Form and TEPCO Specifications
TEPCO delivers to you a Company and Product Information Form and a Registration Application Form and, if the product you desire to supply is among those already registered with TEPCO, its specifications of the product.
Submission of Company and Production Information, Registration Application and VE Proposal Forms
Upon receipt of these prescribed forms, please state an outline of your company and the description, selling points, price and other details of the product you desire to supply in the Company and Product Information Form and fill in all necessary items in the Registration Application Form and VE Proposal Form, and submit them along with backing technical data, test results and other necessary materials for document inspection to the First Procurement Reform (International Procurement) Group of TEPCO.
Inspection of Registration Application
Based on the documents and data submitted, TEPCO comprehensively inspects your registration application in terms of technological capability, quality control system, past record of transactions, after-sale servicing system, delivery system, size and standing of business operation, etc.
Inspection of Proposal
TEPCO comprehensively inspects the VE proposal submitted in terms of technology, safety, cost, etc. to find whether the contents of the proposal meet our quality, function and performance requirements.
Product and supplier will undergo product testing and factory on-site inspection in accordance with the criteria and methods outlined by TEPCO. Costs associated with these inspections are done at supplier's expense.
Usually the inspection takes about six months to one year. Any irregularity in the documents submitted or any delay in their submission may impede the examination, resulting in a longer time of inspection.
Receipt of Notice of VE Proposal Acceptance/Rejection
TEPCO informs you whether your proposal has been adopted or not by a Notice of VE Proposal Acceptance or Rejection. Reward According to Amount of Cost Reduced
TEPCO issues a designated or otherwise preferential order to you according to the degree of contribution by your proposal, especially the amount of cost that can be reduced by it.
