Outsourcing Overview Value Driven Engineering Value Driven - - PowerPoint PPT Presentation

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Outsourcing Overview Value Driven Engineering Value Driven - - PowerPoint PPT Presentation

Outsourcing Overview Value Driven Engineering Value Driven Engineering Outsourcing is one available tool in Mustangs diversified toolkit, but not an all encompassing primary strategy Outsourcing will be used when it makes sense


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SLIDE 1

MUSTANG Value Driven Engineering Value Driven Engineering

Outsourcing Overview

  • Outsourcing is one available tool in

Mustangs diversified toolkit, but not an all encompassing primary strategy

  • Outsourcing will be used when it makes

sense

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SLIDE 2

MUSTANG Value Driven Engineering Value Driven Engineering

Outsourcing: Reality

  • Downstream, Midstream and Automation

driven by:

  • Cost pressure from clients and

competitors to deliver projects at even lower cost

  • Upstream and Pipeline driven by:
  • Local content
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SLIDE 3

MUSTANG Value Driven Engineering Value Driven Engineering

Outsourcing: Reward

  • Ability to do more Project
  • Potentially lower costs for clients
  • New client and market opportunities
  • Global recognition, capabilities, synergism

and responsiveness

  • Access to greater pool of talent
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SLIDE 4

MUSTANG Value Driven Engineering Value Driven Engineering

Outsourcing: Risk

  • Potential upset to existing culture
  • Morale: Perception of giving away work for

home office

  • Quality, performance, reputation,

confidentiality

  • Potential loss of expected profit: unplanned
  • r hidden costs associated with startup,

travel & living, quality and damage control

  • More difficult to act as ‘owner’s engineer’
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SLIDE 5

MUSTANG Value Driven Engineering Value Driven Engineering

Outsourcing: Team Development

  • Compatible cultures
  • Good relationships
  • Good communications
  • Good team trust

Good team trust

  • Aligned of goals
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SLIDE 6

MUSTANG Value Driven Engineering Value Driven Engineering

Outsourcing: Project Execution Plans

  • Scope split
  • Interface plan
  • Management of change
  • Compatibility of tool
  • Organization chart
  • Virtual team
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SLIDE 7

MUSTANG Value Driven Engineering Value Driven Engineering

Outsourcing: Resource Options

  • Must be “Market Facing” and be able to support itself -

winning work on its own in its home market – Company created & owned: can set priorities, define and maintain effective interfaces, maximize alignment and compatibility, share procedures and standards – Company procured & owned: same as above, but must deal with existing company history, issues, methods

  • Partnership: lose some control, requires high level of

trust

  • Subcontractor (competitively bid each project): low

capital investment, high risk in terms of compatibility, quality, confidentially and project cost, compete for attention and service

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SLIDE 8

MUSTANG Value Driven Engineering Value Driven Engineering

Outsourcing: Summary

  • Good option when it makes sense
  • Use it to develop more work
  • Use it to feed virtual teams worldwide
  • Takes good planning