The document discusses a pilot project to develop a standardized HSEQ (Health, Security, Environment, Quality) approach for quality management in industrial subcontracting networks in Lapland, Finland. The pilot will test an HSEQ concept with service suppliers and one or two mines. It aims to identify suppliers' management gaps, create improvement plans, and develop a toolkit to help suppliers meet various mine customers' qualifications. The expected results are improved cost-quality relationships, better value chain management, access to new customers and markets, and continuous quality improvement for suppliers. The region aims to demonstrate sustainable natural resource utilization as part of the EU's new cluster policy.

1. Quality management in industrial
subcontracting network with HSEQ
approach
Teollisuuden alihankintaverkoston
laadunhallinta HSEQ-menetelmällä
Kari Poikela, Digipolis
Northern Lights Corridor
Olos, Muonio 26.11.2014

2. HSEQ:
Health
Security
Environment
Quality
Development group of the pilot project:
Kari Siirtola, Agnico-Eagle Finland Oy Kittilä Mine
Pertti Kortejärvi, ReiConsult Oy
Kari Poikela, Digipolis – Industrial Services
Tapani Tohka, KAVERKO

3. DIGIPOLIS KEMI TECHNOLOGY PARK
• Digipolis Kemi Technology Park is a business development environment,
which is specialized in the interface knowledge of process and service
industries
• Established in 1993, owned by the cities of Kemi & Tornio, the University
of Oulu and municipalities of Simo, Keminmaa and Tervola
• 50 companies, 500 employees in technology park – Network of more than
170 industrial service businesses in Lapland, more elsewhere
• Development actions and services includes Innovative environment
especially for industrial service businesses
• New openings:
– 2008-2014 Expertise on Arctic conditions & Industry, novel wood constructions
– 2012- Ecosystem of the Arctic Industry - Innovation Platform
– Start-Up, Business Incubation, Business Growth, Invest In services
– 16 M€, 21 ongoing development projects, 584 companies and organisations

4. Current situation
• Mining Companies have their own systems to manage HSEQ (quality,
etc.) of service companies, HSEQ -qualifications are identified*
If the service company fulfill qualifications of one mining company it
doesn’t necessarily mean that it is valid for the other possible mining
customer **
• Mining companies operating in Finland have done collective work to
unify supplier qualifications ***
Work has had impact to suppliers only from single-customer
perspective
• Several companies **** from Process industries have created HSEQ -
tool for the supplier assesment
Proven consept exists already in other industries
• Use and range of the services acquired from suppliers varies a lot
between production chains of different mines
Need for several qualification levels
* Study ordered from ReiConsult by Digipolis’ ABD -project
** Vehicles; *** Safety document for the suppliers; **** Outokumpu, Efora, Ruukki, Andritz

5. Aim of the HSEQ-pilot
• To launch a pilot where HSEQ-consept for the mines is tested with a
group of service suppliers and one or two mines
First pilot customer is AEF Kittilä Mine and during pilot AEFs HSEQ-qualifications
are compared to suppliers quality management level
• Results of the comparison
Knowledge/management gaps of the suppliers are documented and
road-map for holistic quality management improvements is created
If every supplier has a same gap, there might be a need of changing
qualification criteria from customer side
• Identified qualifications, knowledge gaps and created road-maps
Holistic process from suppliers current state analysis via HSEQ-management
development plan to be part of customers HSEQ-chain
• Second pilot mine
Comparison to Kittilä Mine’s HSEQ-qualifications and additions /
differences documented
Add-ons increased to HSEQ-toolkit for the mine industry suppliers
These add-on packages can be used to expand tool to meet
Swedish and Norwegian customers’ qualifications

6. Expected results
Customer perspective
• Cost-quality relationship improves
• Better holistic HSEQ -management in value chain
• New potential suppliers – Sweden and Norway expansion
• Learning from others and interaction
Supplier perspective
• Way to continuous improvement, quality management and HSEQ -
culture
• Improved competitiveness
• New potential customers in Scandinavia
• Learning from other and interaction
Next steps
• Benchmarking of other management tools, for example UPA –tool
which is created by The Centre for Occupational Safety

7. Big picture:
Demonstration region for the EU
• DG ENTRI launched call to demonstrate
new wave clustery policy in the relation
Smart specialisation
• 6 regions were selected;
– Centro (Portugal)
– Hamburg (Germany)
– Lapland (Finland)
– Nord-Pas de Calais (France)
– Stockholm (Sweden)
– West region (Romania)
• Regions will be the test beds for EC new
cluster policy and advisory services
• Strong integration with S3
implementation and policy mix

8. Demonstration region for the EU:
Modern Cluster of Arctic industry –
Sustainable utilisation of the arctic
natural resources
• The region possesses the vast
deposits of natural resources and
pristine nature
• Lapland has potential to become
one of the leading regions in the
world in the sustainable
exploitation of natural resources
• The region should focus on
refining of Arctic natural resources
in a socially and ecologically
sustainable manner, combined
with high value added generation
from natural resources in the
region
• Focus on to maintain the balance
in the sustainable development
Lapland

9. Taisto Saari / Stora Enso
Jaana Moona Design ja Studio Imagiar
Lappset Group
Lappset Group
Thank You!
Kari Poikela
Program Manager, Industrial Services
Digipolis Oy
Tietokatu 6
94600 KEMI
mob. +358 50 435 8283
kari.poikela@digipolis.fi
www.digipolis.fi