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 MUSTANG

Outsourcing: Reality Value Driven Engineering Value Driven Engineering 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 MUSTANG

Outsourcing: Reward Value Driven Engineering Value Driven Engineering 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 • MUSTANG

Outsourcing: Risk Value Driven Engineering Value Driven Engineering Potential upset to existing culture • Morale: Perception of giving away work for • home office Quality, performance, reputation, • confidentiality Potential loss of expected profit: unplanned • or hidden costs associated with startup, travel & living, quality and damage control More difficult to act as ‘owner’s engineer’ • MUSTANG

Outsourcing: Team Development Value Driven Engineering Value Driven Engineering Compatible cultures • Good relationships • Good communications • Good team trust Good team trust • • Aligned of goals • MUSTANG

Outsourcing: Project Execution Plans Value Driven Engineering Value Driven Engineering Scope split • Interface plan • Management of change • Compatibility of tool • Organization chart • Virtual team • MUSTANG

Outsourcing: Resource Options Value Driven Engineering Value Driven Engineering 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 MUSTANG

Outsourcing: Summary Value Driven Engineering Value Driven Engineering Good option when it makes sense • Use it to develop more work • Use it to feed virtual teams worldwide • Takes good planning • MUSTANG