Energia s. P. Korolev Rocket and Space Corporation Energia

DEVELOPEMENT STRATEGY

Outlook for the Corporation development and main lines of activity

Information about the strategies and development programs developed in the Corporation

Principles of the Corporation Development Strategy for Short-Term, Medium-Term and Long-Term Periods were approved by the Board of Directors held on April 22, 2011 (Minutes No 9). Fundamentals of the Strategy were reviewed at the Corporation Board of Directors’ meetings on strategy, innovation-driven growth, and modernization (held on Dec 23, 2013 and Feb 19, 2014).

The Corporation Innovative Development Program (IDP) for 2011-2020 was approved at the Board of Directors held on July 14, 2011 (Minutes No 1). Medium-term plans for putting into effect of IDP-related actions are developed and implemented on an annual basis. Monitoring of IDP performance progress is conducted annually by authorized Federal bodies of administration.

The Corporation Board of Directors held on April 29, 2014 (Minutes of the meeting No 10) approved the report on the implementation results of Innovative Development Program of the Corporation for 2013, and reviewed proposals to update the IDP. The report on the results IDP implementation for 2014 is slated for review by the Corporate Board of Directors in May 2015.

Corporation development outlook

Manned Space Systems

As for the manned space systems, efforts will continue to deploy and operate the International Space System Russian Segment, including:

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  development of the multipurpose laboratory, node and science and power modules, integration of which into the ISS RS will make it possible to significantly expand the program of scientific and applied research make the Russian Segment independent of power supply from the US segment of the station;
  
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  efforts to build free-flyer OKA-T-MKS with servicing on the ISS which is designed for conducting scientific experiments.
  
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  Launches of Soyuz manned space vehicles and Progress transport cargo vehicles as part of ISS Russian Segment logistics, step-by-step modification of these space vehicles in order to improve their performance and reduce dependence on imported components;
  
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  implementation of scientific-applied research and experiments program, as well as advanced space technologies development testing;
  
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  provision of services to international partners for crews delivery to the ISS and their return to Earth.
  

It is assumed that the ISS will be operated at least until 2024. When the ISS will be decommissioned will be determined by an agreement between all the countries participating in the project.

Upon completion of the ISS program, there are plans to use new ISS RS modules to establish a new-generation orbital station.

Soyuz manned space vehicles are expected to remain the only means for crews transportation to the ISS till 2017-2018 when the US manned space vehicles currently under development are presumed to become operational.

Efforts will continue to develop the New-Generation Manned Transportation Spacecraft (NG MTSC) system. The dates for starting flights tests of the spacecraft will be driven (among other things) by the readiness of launch vehicle and ground infrastructure needed to launch the spacecraft into low-earth orbit. Putting the NG MTSC into service will enable more efficient transport operations and scientific research both in low-Earth orbit and beyond, including circumlunar space.

The Corporation intends to take part in manned programs of deep space research and exploration, including international programs. Preliminary design of advanced manned programs elements is being carried out.

Unmanned Space Systems

As far as the unmanned space systems are concerned, work will be in progress on building spacecraft (SC) for government and commercial customers. The focus will be on developing highly complex systems with unique tasks under special programs in the interests of national security.

In order to improve competitiveness and reduce risks during product development, there are plans to develop competencies in the field of satellite payloads.

Cooperation with the Airbus Defense and Space will continue further, including activities within the joint venture, which will be focused on introduction of the advanced technologies of modern spacecraft manufacturing, building competitive communications and

Earth remote sensing SC.

Space launcher systems

The main objectives of this line of activities are:

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  manufacturing of upper stages of the Block DM type for launching spacecraft under government programs, upgrade of upper stages of the Block DM type in order to improve their power/mass characteristics and raise competitiveness;
  
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  development of light environmentally-friendly oxygen/kerosene upper stages;
  
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  participation in advanced launch vehicle development projects, development of orbit-to-orbit transfer vehicles, required to support programs of deep-space studies and exploration.
  

Implementation of the planned program of activities will enable a more than twofold increase in the total revenue of the Corporation by 2020. It is planned to achieve this target through, among other things, an increase in labor productivity.

One of the top priorities of the Corporation development is international cooperation. In spite of the complex political situation, there are plans to preserve cooperation with partners in Europe, USA, Japan and other countries.

In organizational context, the future prospects of the Corporation are linked to its upcoming inclusion into the State Corporation Roscosmos, which is being established within the framework of Russia’s rocket and space industry reform.

As for the Sea Launch space launching system, the work is currently under way to evaluate the feasibility of adapting the existing Sea Launch system to launching integrated launch vehicles based on the Angara LV family that are produced by Khrunichev State Research and Production Space Center. Possible candidates are Angara 1.2 and Angara A3 launch vehicles.

Innovative Development

In accordance with the Innovative Development Program, RSC Energia continues introduction of advanced technologies for articles development, manufacture and testing. These actions are meant to strengthen the Corporation competitive position on the market.

Strategic goal of the Corporation innovative development is ensuring dynamic, long-term, sustained and balanced development based upon maintaining and strengthening competitive positions on the market of space technology and services, partly due to taking on leadership in introduction of innovative products into the market and creating demand for them focusing on efficient innovative activity.

RSC Energia Innovative Development Program envisages that the following main problems will be solved:

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  expansion and retention of market niches through development and introduction to the market of new-generation innovative products; introducing innovative technologies and engineering solutions into the Corporation production activities;
  
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  ensuring process sustainability of the Corporation manufacturing and test facilities for implementing government and international cooperation programs;
  
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  implementation of restructuring of the Corporation manufacturing and test facilities; conduct of technological re-equipment and modernization of the production in order to raise labor productivity, energy efficiency and ecological safety at the enterprise;
  
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  improvement in mechanisms and management system of the Corporation innovative development in the interest of an increased efficiency in R &D planning and carrying out; progress in business processes, enhancement of output quality.
  
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  broadening forms and mechanisms of cooperation in the field of innovations with companies engaged in small and medium-size innovation business, research organizations and institutions of higher education, including mechanisms of shared participation in technological platforms;
  
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  creating conditions for ensuring innovative orientation to development of manpower potential.
  

Level of investment with breakdown by financing sources

One of the sources of investments for 2014 is the net profit of 2012 that was not used in 2013 amounting to 103767.9 thousand rubles.
Level of investments at RSC Energia in 2014 with breakdown by financing sources, thousand rubles

Name	Actually fulfilled in 2014, thousand rubles
Sources
Receipts	704 697.1
Depreciation	364 558.6
Net profit*	103 767.9
Investment credits	194 720.6
Target funding**	41 650.0
Project areas
Outlays	704 697.1
Innovative development fund	221 496.0
Target projects***	123 551.0
Capital investments	359 650.1
Financial investments	0.0

*Profit resulting from activities in 2012 that was not spent in 2013 was used. The profit resulting from the 2013 activities was not used owing to the fact that in 2014 there was no decision on its distribution from the General Shareholders’ Meeting.

** In addition to this, co-investors funds for shared funding of residential construction – 869192.7 thou. rubles.

*** In addition to this, residential construction costs – 1,026,162.8 thou. rubles.

Quality Management System in force at the Corporation

The Corporation has adopted and uses a Quality Management System (QMS), that was certified by the Quality Management System Certification Authority (QMS CA) SOYUZCERT:

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  in the Military Register system (Certificate of conformity № VR 05.1.8304-2014 dated 24.12.2014, expires on 24.12.2017) for conformity with requirements of GOST ISO 9001-2011, GOST R EN 9100-2011, standards SRPP VT, including GOST RV 0015-002-2012, Provisions RK-11, RK-11-KT, RK-98, RK-98-KT, OST 134-1028-2012 during design, development, production, installation, repair and servicing of weapons and military equipment and rocket and space hardware;
  
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  In the Federal System for Certification of Space Hardware (Certificate of conformity № FSS KT 134.19.3.1.000000.101.14 dated 24.12.2014, expires on 23.10.2016) for the conformity with requirements of Provisions RK-98, RK-98-KT, RK-11, RK-11-KT, state standards SRPP VT, including GOST RV 0015-002-2012, GOST ISO 9001-2011, GOST R EN 9100-2011 and OST 134-1028-2012 during design, development, production, installation, repair and servicing of rocket and space hardware.
  

The QMS regulatory framework for the Corporation are national and industrial standards, standards of the organization (the company). The Corporate QMS is based on 55 industry (company) standards, the most important of which are:

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  Industry standard 07530238-004-2009 «QMS. Manual on the quality of rocket and space hardware. Basic provisions»;
  
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  Company standard 351-204-2005 «QMS. Quality Management System documents. General requirements»;
  
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  Company standard 351-205-2005 «QMS. Internal Audit of the Quality Management System. General requirements»;
  
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  Company standard 351-215-2005 «QMS. Records Management. General requirements»;
  
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  Company standard 351-216-2005 «QMS. Nonconforming Products Management. General requirements»;
  
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  Company standard 351-217-2005 «QMS. Corrective Actions. General requirements»;
  
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  Company standard 351-218-2005 «QMS. Preventive Actions. General requirements».
  

Along with the above company standards, the Corporation put into action regulatory documents (GOST RV 0015-002-2012, GOST R EN 9100-2011, OST 134-1028-2012 etc.), which govern requirements for processes and procedures during all phases of product development.

The Corporation holds annual internal QMS audits. In 2014 the internal QMS audit was conducted in accordance with the program approved by means of a Corporate decree, which includes the following checks of:

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  management and performance of work on developmental testing of products and their components;
  
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  management and performance of work on introduction of information technologies to support quality assurance of rocket-and-space hardware (the use of IT-systems and IT-services by Corporate departments);
  
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  management and performance of work on metrological support to assure quality of the products in the course of their development;
  
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  management and performance of work on labor safety and manufacturing supervision.
  

Main objectives and subjects of internal audits, guidelines for planning, conducting and documenting the audits of the Corporate QMS are defined in the company standard 351-205-2005 «QMS. Internal audit of the Quality Management System. General requirements»;

The results of internal audits are presented in reports. The annual report on the internal QMS audit of Corporation is approved by the Vice President for Quality Assurance.

Supervisory audit (external audit) of the certified QMS

In 2014, work was conducted to certify the Corporate QMS in the Military Register certification system. The Corporation was issued certificate of conformity № VR 05.1.8304-2014 dated 24.12.2014.

Supervisory audit of the certified QMS of the Corporation (external audit) is conducted annually by the audit team of QMS CA SOYUZCERT.

The last supervisory audit of the certified QMS of the Corporation in the Federal System for Certification of Space Hardware (FSC SH) was conducted during the period of 30.09.2014 to 03.10.2014. QMS CA SOYUZCERT published a Resolution to issues RSC Energia with certificate of conformity № FSC SH 134.19.3.1.000000.101.14 dated 24.12.2014.

Performing work to improve the QMS. QMS effectiveness estimate

The Corporation performs work to introduce state-of-the-art information technologies:

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  «Windchill Quality Solutions (Relex)» – the quality and reliability management system, allowing to:
  

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  use standard procedure for evaluating and calculating the reliability of the Corporate products;
  
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  establish a common database for non-conformances throughout all the phases of product development on the basis of Windchill FRACAS;
  
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  conduct analysis of possible failures and minimize their consequences.
  

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  «Windchill RequirementsLink» – requirements management system, allowing to:
  

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  automate verification process of specification requirements;
  
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  estimate interactions between changes in the structure and requirements;
  
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  simplify supervision over compliance with design standards and customer requirements;
  
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  introduce integrated control of requirements throughout all the phases of product development;
  
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  create an electronic passport of the product and its components.
  

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  «Arbortext» – system for automated development of electronic structured engineering documentation, allowing to:
  

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  create electronic structured engineering documentation of the Corporation, meeting the requirements of GOST standards and regulatory documents of the Corporation to provide indenture and dependence of elements of documents under development;
  
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  create interactive electronic engineering manuals as a structured package of interrelated technical data, intended for providing online reference and descriptive information about operations and repair procedures related to a specific product;
  
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  separate formatting elements from the text of the document itself in order to simplify the handling of engineering documentation for the user;
  
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  perform integration with the Corporate systems: Creo, Windchill to support the functions of redlining, visualization, associative links with the electronic structure of the product and the electronic model of the product;
  
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  develop engineering documentation in the international cross-platform format intended for data storage and transmission;
  
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  reduce the number of errors when developing and introducing errors;
  
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  accelerate publication of the documentation.
  

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  Electronic archive of permissions to deviate from design documentation, allowing to:
  

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  establish a unified electronic archive of deviation permits;
  
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  obtain on-line reports on deviation permits;
  
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  analyze and prepare corrective actions.
  

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  module of automated monitoring and compliance with recommendations of the non-conformances commission, allowing to:
  

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  provide supervision over compliance with recommendations of the non-conformances commission in a unified system within Corporate framework;
  
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  generate analytical materials for managers and actionees about the status of compliance with commission’s recommendations;
  
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  provide storage of commission’s findings packaged with Organizational/Administrative Documentation (O/AD) about the formation of the commission and reporting documents proving that the recommendations were fulfilled.
  

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  module Kontrol-M-KIG – system for monitoring performance discipline, allowing to:
  

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  provide a complete monitoring cycle for processes involving assignment and processing of tasks, including monitoring of their performance and obtaining reports about their performance;
  
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  store reporting materials confirming the performance packaged with (O/AD) and tasks assigned with respect to the document;
  
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  generate analytical materials for managers about the status of performance of O/AD as monitored by the Review and Action Team;
  

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  module for monitoring financial and economic activity in the Corporation, allowing to:
  

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  provide efficient management of Corporate projects;
  
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  provide an estimate of the efficiency of the implementation of project activities as regards monitoring the planned/actual budgets of receipts and outlays, cash flow budgets, signed contract schedules, publication of orders to organize work on the Corporate projects.
  

Every year the Corporation develops a «Program for Improving the Quality Management System, Assuring and Improving the Quality of RSC Energia Products Throughout All the Phases of Their Development».

In order to assure and improve the quality of the products, quality program was developed for the New-Generation Manned Transportation Spacecraft (NG MTSC). Currently under development are quality programs for:

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  Scientific-Power Module (SPM)
  
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  Unmanned spacecraft «OKA-T»;
  
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  cargo transportation spacecraft Progress MC;
  
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  manned transportation spacecraft Soyuz MC;
  

Work was performed to analyze conformity of the Corporate regulatory documents to the requirements of GOST R EN 9100-2011.

Industry standard 07530238-004-2009 «QMS. Manual on the quality of rocket and space hardware. Basic provisions» was updated to bring it in line with the requirements of GOST R EN 9100-2011.

A statement was published on the conformity of work performed under the Sea Launch project to the requirements of GOST R EN 9100-2011.
The Corporation performs work to certify its products in the Federal System for Certification of Space Hardware under contracts with ZAO Center for Certification of Rocket and Space Hardware involving annual supervisory audits of certified products. The following certificates of conformity are available:

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  № FSS KT 134.01.1.4.762500.66.13 dated 17.06.2013 for manned transportation spacecraft Soyuz TMA 11F732.0000A47-0 for conformity to the requirements of ТЗ.0011.007-11Ф732, ТЗ.0013.052, 11Ф732ТУ-1, 11Ф732.0000А47-0ТУ. The certificate is valid till 17.06.2018;
  
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  № FSS KT 134.01.1.4.762500.68.13 dated 17.06.2013 for cargo transportation spacecraft Progress M 11F615.0000A60-0 for conformity to the requirements of RFP (П27955-170), ТЗ.0013.051, 11Ф615ТУ-1, 11Ф615.0000А60-0ТУ. The certificate is valid till 17.06.2018.
  

Definition of QMS processes, assessment criteria and methods for controlling the processes are established in the Industry standard 07530238-004-2009 «QMS. Manual on the quality of rocket and space hardware. Basic provisions». The results of performance assessment of the certified Corporate QMS are provided in annual reports.

The effectiveness of the Corporate QMS, and of the measures aimed at assuring the quality and reliability of the Corporation’s products is born out by certificates issued to the Corporation, as well as by the fact that the actual Mission Success Probabilities (MSP) for spacecraft Soyuz TMA (MSP = 0.994) and Progress M (MSP = 0.995) are significantly higher than those specified in the requirements specifications for these spacecraft (MSP = 0.95).

Information about the absence in 2014 of complaints to the Corporation from the Government customers as to the quality of military hardware systems and products

In 2014, no complaints were received by RSC Energia from the Government customers as to the quality of military hardware systems and products.