Premium Essay

Norther Drilling

In:

Submitted By daduan
Words 2042
Pages 9
NORTHERN DRILLING INC.: A TACTICAL DILLEMA IN GROWTH STRATERGY

The DILEMMA
The General manager of Northern Drilling Inc.(Northern) Peter Bremner (referred to ‘Bremner’ hereafter), has received a request for a proposal to perform exploratory drilling for MOND NICKLE COMPANY, and Bremner will need to submit his proposal within the next three weeks. If Northern manages to get this order, this will be their largest contract till date and will give them a chance to get on board one of the largest Canadian mining companies which is on the verge of massive growth. On the flipside, this project may endanger the relationship Northern has with Noranda Nickel (Noranda), one of its most loyal customers who contribute to 60% of their business.
Also since this is a highly complex project, Bremner must evaluate whether Northern has the capability to handle a job of this magnitude given the challenges the industry is facing with finding experienced drillers.

PROBLEM STATEMENT:
Bremner must factor in all the challenges mentioned and take a call to submit a proposal. If he does then he should make sure that price is competitive yet profitable and that should also make sure Northern has contingency plans in place to handle this complex project

CRITERIA: 1. Project Profitability (Cash Flow): Given that the company management wanted a 30% gross margin, what would be the cash flows of the company for the duration of this project. What alternative will fetch them the highest positive NPV at a hurdle rate of 20% 2. Continued Strategic Relationship with Noranda Nickel: Given the dependency of their business on Noranda, what alternative ensures that they safeguard this relationship and continue business with them in the future. 3. Competitiveness of the bid: Since there are many players in the market bidding, Northern has to evaluate what measures it should take to

Similar Documents

Free Essay

Donner Case

...Appendix II: Break-even analysis for Drilling and Profiling processes ............................................................ 3 Appendix III: Standard operation times (setup and run time scaled per board) ............................................ 4 Appendix IV: Total operation time results for the order sizes 1, 8, 200 and 800 ............................................ 5 Appendix V: Capacity in the DFPR area ............................................................................................................ 6 ! II! Executive Summary The Donner Company manufactures Soldermask over bare copper circuit boards. Meeting specifications of small and large electronic firms by a self-invented process making them one of the industry leaders. The routine process1 can be divided in three main stages - preparation, image transfer and fabrication (Appendix I). In both, image transfer and fabrication, it is possible to choose between two alternate technologies (manual vs. automatic) leading to the same output in a sub-process while differing in a fixed setup time and run time per board. Therefore, a break-even quantity was calculated for both in order to configure a decision rule on which option to schedule customer orders to achieve the smallest total production time (Appendix III). As a result, for manufacturing orders of more or equal than six boards the CNC Drill should be the preferred technology in the drilling process. However, for orders greater...

Words: 1688 - Pages: 7

Premium Essay

Business Ethics

...supplying a natural gas that burns cleaner than others because of the molecular structure it possess. This supply of natural gas allows the United States to be less contingent on foreign companies for energy supplies and provides royalties for the state of Wyoming. Questar drills and operates in close proximity to wildlife habitats that rely on the mesa, sagebrush and high elevation for survival. The Bureau of Land Management has specific limitations based on the habitat surrounding the drilling sites that Questar must follow to protect the wildlife. Studies were conducted that indicated that the restrictions were not sufficient enough to address the decline in the sage grouse; although Questar have followed the guidelines set forth by the Bureau of Land Management. The sage grouse are being considered for the endangered species list as it is believed to have a population of only 250,000 remaining. The argument that Questar presents is that the federal land was needed for the United States for drilling and mining. To reduce the impact of operations that would affect wildlife, Questar executives prepared a plan to invest in new technology. They petitioned for permits that would allow them to drill for the entire year at a single pad instead of closing down for the winter...

Words: 588 - Pages: 3

Free Essay

Steps in the Fracking Process

...Step 6: Once the drilling gets about 500 feet above the shale formation, a downhole drilling motor with sophisticated measuring instruments begins the angle drilling creating a new horizontal path into the shale formation. Step 6: Once the drilling gets about 500 feet above the shale formation, a downhole drilling motor with sophisticated measuring instruments begins the angle drilling creating a new horizontal path into the shale formation. Step 4: The cement and casing are then pressure tested to ensure hydrocarbons and other fluids don’t seep out. Step 4: The cement and casing are then pressure tested to ensure hydrocarbons and other fluids don’t seep out. Step 3: Cement is then poured into this tubing throughout, displacing any remaining fluids and securing the casing in place. Step 3: Cement is then poured into this tubing throughout, displacing any remaining fluids and securing the casing in place. Step 2: The drill pipe and bit are removed and a steel “surface casing” tube is inserted into the well which stabilizes the well sides, creating a barrier. Step 2: The drill pipe and bit are removed and a steel “surface casing” tube is inserted into the well which stabilizes the well sides, creating a barrier. Step 1: Vertical well begins to be drilled with a drill pipe and drill bit past the ground water level a few thousand feet down. Step 1: Vertical well begins to be drilled with a drill pipe and drill bit past the ground water level a few thousand feet down. ...

Words: 724 - Pages: 3

Free Essay

Donner Case Partial

...Introduction: Donner Company, a customized printed circuit board manufacturer is facing three main problems: productivity, quality issues and delayed deliveries. We start analyzing with a diagram showing information flow beginning from the customer placing the order to the delivery of that order can be represented as below. Customer places order Customer places order Estimate Labour and Material costs Estimate Labour and Material costs Prepare and submit bid Prepare and submit bid Check & Verify Design Check & Verify Design Detailed specifications and factory order by Altmeyer Detailed specifications and factory order by Altmeyer Normal Normal Customer accepts bid? Customer accepts bid? Yes Yes Promise delivery time Promise delivery time 1 day from bid accept-ance 1 day from bid accept-ance Rush Rush Scheduling & processing of order Scheduling & processing of order 4 days from bid accept-ance 4 days from bid accept-ance 2 days 2 days No No End End Material specifications by Schnabs Material specifications by Schnabs Delivered to customer Delivered to customer Send order to purchasing agent Send order to purchasing agent Shipping the order Shipping the order Instruct purchasing agent & procure material Instruct purchasing agent & procure material Blue print, factory order sent to Flaherty Blue print, factory order sent to Flaherty Blue print, factory order sent to Flaherty Blue print, factory order sent...

Words: 2220 - Pages: 9

Premium Essay

Ethics Overview Bp Oil Spill

...but by that time, more than 4 million barrels of oil had been released into the gulf. The BP oilrig, owned by Transocean, Deepwater Horizon had been in operation in the Gulf of Mexico since February 2001. The rig was valued at more than $560 million dollars and worked on many different wells in the gulf. The last well it operated on was the Macondo well. It was this well that the oil spill came from and was brought about by several preventable errors on the part of BP and Transocean management and employees. The Deepwater Horizon vessel was an exploratory rig assigned the duty of finding oil, reporting it, and capping the well for another extracting type rig to come in and harvest the oil. While drilling the well, the rig encountered pockets of natural gas buildups where it was drilling. A week prior to the fatal explosion, Horizon encountered one of these pockets and the natural gas began to rise up the drill bore and began surfacing on the rig platform. When this happened, an immediate freeze was put on all activities to prevent an explosion. These same events would eventually play a part in the explosions aboard Horizon. A second major factor was the cementing process. When the well was being prepared for closure so another rig could use it in the future, the team...

Words: 5006 - Pages: 21

Premium Essay

Management

...situation? Explain your choice(s). Feedforward control would have been the most useful type of control in this situation. The Deepwater Horizon accident had massive implications for the health of workers and nearby residents, the economy, and the environment. BP had a responsibility to take the potential dangers of their drilling operation seriously and plan for potential problems. There should have been backup protections to prevent accidents like the one that occurred. At the very least they should have practiced concurrent control. At the first signs of a problem they should have taken whatever actions were necessary to prevent the type of disaster that occurred. 2. Using Exhibit 18-2, explain what BP could have done better. First the company needed to measure their actual performance. They needed to look at their practices and analyze the data that they were receiving from engineers on the site to determine whether or not the work was being completed in the proper manner. Once this data was collected it needed to be analyzed in an objective way and compared to both the internal standards and the external regulations set by governing bodies for oil drilling operations. When issues were discovered they needed to be taken seriously by people at all levels of the company and appropriate action needed to be taken to prevent the explosion which endangered both BP employees and residents in the area. Management needed to act quickly and in whatever manner was necessary to prevent...

Words: 315 - Pages: 2

Premium Essay

Donner

...Operations Management Term-2 Case Analysis DONNER COMPANY Contents Introduction ................................................................................................ 2 Process flow chart ....................................................................................... 2 Issues faced by Donner ............................................................................... 4 Problems in production process design ........................................................................................ 4 Problems in Productivity .............................................................................................................. 4 Problems in Delivery System ....................................................................................................... 5 Data analysis ............................................................................................... 5 Question 2 .................................................................................................................................... 5 Question 3 .................................................................................................................................... 6 Question 4 .................................................................................................................................... 7 Conclusion ................................................................................................... 7 Appendix...

Words: 1496 - Pages: 6

Premium Essay

Beck Manufacturing

...of Business Administration May 6, 2013 Dr. Alvin Pexico Beck’s Capacity Beck Manufacturing has 5 Operational work stations. They are Milling, Grinding, Boring, Drilling and Assembly. The one work station that can easily be adjusted, according to the engineering department is the assembly station. The Milling station has 5 machines that can produce 2 pieces per minute. The Grinding department has 7 machines can produce 3 pieces per minute. The Boring department can produce 1 piece per minute. The Drilling department has 6 machines that can produce 2.5 pieces per minute. The following table shows each department and the total capacity per hour of each department. Table 1. |Machine Center |Capacity |pieces per hour | |Milling |(5 machines)(2 Pieces/min)(60min/hour)/(16 hours/day) = |37.5 p/hr | |Grinding |(7mach)(3 p/min)(60 min/hr)/(16 hr/day) = |78.75 p/hr | |Boring |(3 mach)(1 p/min)(60 min/hr) / (16 hr/day) = |11.25 p/hr | |Drilling |(6 mach)(2.5 p/min)(60 min/hr)/(16 hr/day) = |56.25 p/hr | The table makes it easy to identify...

Words: 377 - Pages: 2

Free Essay

Rock Excavation

...information will provide an understanding of rock excavation and the various considerations (i.e. cost, local regulations, safety, etc.) contractor’s should have in mind when estimating and planning projects that involve rock excavation. The Rock Breaking Process When determining the proper method for excavating rock there are a few things you should consider. Determine how much rock you anticipate needs excavating. Is the rock solid? Is the rock easily accessible, how far below grade? Do the aesthetics of the rock matter in the end product? And is there any local regulations restricting particular methods? These are all questions that need to be answered before any rock excavation method begins. The traditional methods are ripping, drilling, breaking and blasting. Blasting is the controlled use of explosives to excavate rock and has been used for many years. When blasting a careful...

Words: 3885 - Pages: 16

Free Essay

Metal Forming Process

...Theory: Forming process are solid state manufacturing processes involving minimum amount of material wastage and faster production. It does have been one of the common methods in formation of product in multi shape and size. In fact some of casting product will undergoes forming process to achieve more precise shape. In metal forming, transformation to desire shape is done at solid state and usually required high forces. If the temperature is below crystallization temperature, it is called ‘cold work’. Large force is applied such that the material flows and takes the desired shape. These processes are normally used for large scale production rates. It is also generally economical and many cases improve the mechanical properties. Some of the metals forming process are rolling, forging, extrusion, drawing, sheet metal forming and bending. In fabrication of metal dustbin, below process forming process are involved. a. Sheet Metal Cutting -Sheet metal cutting can be done by shearing operation. Shearing is the mechanical cutting of material without the formation of chips or the use of burning or melting. When sheets of metal are to be sheared along a straight line, squaring shears are frequently used. As the upper ram descends, a clamping bar or set of clamping fingers presses the sheet of metal against the machine table to hold firmly in formation. A moving blade then comes down across a fixed blade and shears the metal. On larger shears, the moving blade is often set...

Words: 615 - Pages: 3

Premium Essay

Drilling

...entrance side and the presence of burrs on the exit side (unless they have been removed). Also, the inside of the hole usually has helical feed marks.[3] Drilling may affect the mechanical properties of the workpiece by creating low residual stresses around the hole opening and a very thin layer of highly stressed and disturbed material on the newly formed surface. This causes the workpiece to become more susceptible to corrosion at the stressed surface. For fluted drill bits, any chips are removed via the flutes. Chips may be long spirals or small flakes, depending on the material, and process parameters.[3] The type of chips formed can be an indicator of the machinability of the material, with long gummy chips reducing machinability. When possible drilled holes should be located perpendicular to the workpiece surface. This minimizes the drill bit's tendency to "walk", that is, to be deflected, which causes the hole to be misplaced. The higher the length-to-diameter ratio of the drill bit, the higher the tendency to walk. The tendency to walk is also preempted in various other ways, which include: * Establishing a centering mark or feature before drilling, such as by: o Casting, molding, or forging a mark into the workpiece o Center punching o Spot drilling (i.e., center drilling) o Spot facing, which is facing a certain area on a rough casting or forging to establish, essentially, an island of precisely known surface in...

Words: 920 - Pages: 4

Premium Essay

Management Case Study

...situation? Explain your choice(s). Feedforward control would have been the most useful type of control in this situation. The Deepwater Horizon accident had massive implications for the health of workers and nearby residents, the economy, and the environment. BP had a responsibility to take the potential dangers of their drilling operation seriously and plan for potential problems. There should have been backup protections to prevent accidents like the one that occurred. At the very least they should have practiced concurrent control. At the first signs of a problem they should have taken whatever actions were necessary to prevent the type of disaster that occurred. 2. Using Exhibit 18-2, explain what BP could have done better. First the company needed to measure their actual performance. They needed to look at their practices and analyze the data that they were receiving from engineers on the site to determine whether or not the work was being completed in the proper manner. Once this data was collected it needed to be analyzed in an objective way and compared to both the internal standards and the external regulations set by governing bodies for oil drilling operations. When issues were discovered they needed to be taken seriously by people at all levels of the company and appropriate action needed to be taken to prevent the explosion which endangered both BP employees and residents in the area. Management needed to act quickly and in whatever manner was necessary to prevent...

Words: 295 - Pages: 2

Premium Essay

Chile Miner's Rescue Summary

...CASE STUDY: “LEADING THE RESCUE OF THE MINERS IN CHILE” COURSE: LDP 604 DESIGN PLANNING AND IMPLEMENTATION NAME: WAIGURU LEILA WANJIRU REGISTRATION NUMBER: L50/76280/2014 AN ASSIGNMENT SUBMITTED IN PARTIAL FULFILLMENT FOR REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF ARTS IN PROJECT PLANNING AND MANAGEMENT. 3RD NOVEMBER, 2014 Chilean Miners’ Rescue On 5th August, 2010 Chile hit the headlines with 33 miners drilling 2300 feet below the surface in a copper and gold mine in Atacama Desert, 800 kilometres North of Chile’s Capital Santiago were trapped by a massive cave- in. Chilean Mining Minister, Laurence Golborne, who had accompanied President, Sebastian Pinera, on a state visit to Quito, Ecuador, got the news at 11pm shortly after their arrival. Golborne informed the president the following morning and flew to Santiago via Peru on commercial flights then took a Chilean Air force flight to Copiapo before a 45-kilometre drive to the mine, arriving on August 7. Golborne, an engineer and entrepreneur, was recruited by the business friendly president who was inaugurated in March 2010 after success as Chief Executive of Censoud A, a large Chilean retail firm. Just 4 months in office with no mining background, Golborne took charge of a widely viewed disaster recovery effort. 69 days later, all 33 miners were rescued. Crew Foreman Luiz Urzua led the 33 trapped miners to form a small society to ration food, preserve morale, and protect their scarce resources. A surface team numbering...

Words: 3583 - Pages: 15

Free Essay

Afafas

...through the wash pipe by means of a high velocity pump to rinse fragments of soil. •Similar to process of installing an underground water pump. HOLLOW STEM AUGER BORING SYSTEM •A truck mounted driving rig turns the auger to a depth of more than 60 meters . •Has a hollow stem where samples of soil can be retrieved. ROTARYDRILLING • One of the most efficient and convenient method of soil sample retrieval. • Used for soil structure characterized by high resistant materials such as rocks, clay as well as sand. • Auger diameter – 60-80mm PERCUSSION DRILLING METHOD • a.k.a. Cable Tool Drilling Method • Used when boring or auger method is not possible due to difficulty in penetration of soil especially hard soil strata. PENETROMETER •A device used to investigate the consistency of cohesive deposit or relative density of cohesionless strata without the necessity of drilling and obtaining samples. • Static penetration is characterized by consistent and uniform force or pressure application and dynamic penetration when driven into the soil. •The number of blows to make a penetration of 300mm is regarded as the penetration resistance. DUTCH CONE PENETRATION METHOD •A cone is attached to the tip of a rod and protected by a casing. •The cone is pushed by the rod into the ground. •The cone is slightly larger than...

Words: 375 - Pages: 2

Premium Essay

Chile Miner's Rescue Summary

...CASE STUDY: “LEADING THE RESCUE OF THE MINERS IN CHILE” COURSE: LDP 604 DESIGN PLANNING AND IMPLEMENTATION NAME: WAIGURU LEILA WANJIRU REGISTRATION NUMBER: L50/76280/2014 AN ASSIGNMENT SUBMITTED IN PARTIAL FULFILLMENT FOR REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF ARTS IN PROJECT PLANNING AND MANAGEMENT. 3RD NOVEMBER, 2014 Chilean Miners’ Rescue On 5th August, 2010 Chile hit the headlines with 33 miners drilling 2300 feet below the surface in a copper and gold mine in Atacama Desert, 800 kilometres North of Chile’s Capital Santiago were trapped by a massive cave- in. Chilean Mining Minister, Laurence Golborne, who had accompanied President, Sebastian Pinera, on a state visit to Quito, Ecuador, got the news at 11pm shortly after their arrival. Golborne informed the president the following morning and flew to Santiago via Peru on commercial flights then took a Chilean Air force flight to Copiapo before a 45-kilometre drive to the mine, arriving on August 7. Golborne, an engineer and entrepreneur, was recruited by the business friendly president who was inaugurated in March 2010 after success as Chief Executive of Censoud A, a large Chilean retail firm. Just 4 months in office with no mining background, Golborne took charge of a widely viewed disaster recovery effort. 69 days later, all 33 miners were rescued. Crew Foreman Luiz Urzua led the 33 trapped miners to form a small society to ration food, preserve morale, and protect their scarce resources. A surface...

Words: 3583 - Pages: 15