Companies using offshoring

The company identifies threats The company identifies threats and manage risk 

Supply chain planning has fundamental significance in particular from the point of view of its integration and mitigation of risks, e.g. related to deficit of inventories, long order completion cycle and inadequate production resources planning. However, none of the analysed companies has undertaken any such actions to mitigate risk in relationships 

Other purchaser opinion poll End-customer opinion poll Company employees opinion poll Other 

With regard to the reasons underlying an organisation s interest in risk management, companies indicated the following four reasons  

To recapitulate, in the area of offshoring, the companies mostly focus on prevention and improvement of relationships. On the other hand, in outsourcing, mainly logistics, such practices are of secondary importance. Admittedly, supplier assessment and risk monitoring are applied to a similar extent however, one can notice a considerable unwillingness to building relationships based on confidence and shared objectives. 

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Table 4.5 Threats indicated by companies using offshoring-based solutions (on a scale from 1 to 5)...

Threats indicated by companies using offshoring-based... 

Captive Offshoring Used to describe a company-owned offshore operation. For example, Microsoft owns and operates significant captive offshore research and development centers in China and elsewhere that are offshore from Microsoft s U.S. home base. Also see Offshoring. ... 

The demands in terms of plant safety, reliability, efficiency and most importantly size and weight, grow as one moves from onshore locations to the offshore sector. In this chapter the different approaches by companies to offshore development - including down hole and whether processes should be carried out on ships, platforms or even back onshore - will help readers to appreciate the examples given later of intensified unit operations used in such situations. 

Other regulations apply in different offshore drilling areas in the United States and around the world. AH have had a profound effect on drilling fluid technology (169,170). Very few instances of water-base muds failing the mysid bioassay test exist in the 1990s. Operators and service companies have eliminated use of the mote toxic additives, reformulated old mud systems, and developed new ones to ensure acceptable environmental performance based on pertinent regulations. 

Both the Power Industry and the petrochemical industries use the aircraft-type turbine. The Power Industry uses these units in a combined cycle mode for power generation especially in remote areas where the power requirements are less than 100 MW. The petrochemical industry uses these types of turbines on offshore platforms especially for gas re-injection, and as power plants for these offshore platforms, mostly due to their compactness and the ability to be easily replaced and then sent out to be repaired. The aeroderivative gas turbine also is used widely by gas transmission companies and petrochemical plants, especially for many variable speed mechanical drives. These turbines are also used as main drives for Destroyers and Cruise Ships. The benefits of the aeroderivative gas turbines are ... 

The Hydrocarbon Processing Industry (HPI), has traditionally been reluctant to invest capital where an immediate direct return on the investment to the company is not obvious, as would any business enterprise. Additionally financial fire losses in the petroleum and related industries were relatively small up to about the 1950 s. This was due to the small size of facilities and the relatively low value of oil and gas to the volume of production. Until 1950, a fire or explosion loss of more than 5 million U. S. Dollars had not occurred in the refining industry in the USA. Also in this period, the capital intensive offshore oil exploration and production industry were only just beginning. The use of gas was also limited early in the century. Consequentially its value was also very low. Typically production gas was immediately flared or the well was capped and considered as an uneconomical reservoir. Since gas development was limited, large vapor explosions were relatively rare and catastrophic destruction from petroleum incidents was essentially unheard of. The outlays for petroleum industry safety features were traditionally the absolute minimum required by governmental regulations. The development of loss prevention philosophies and practices were therefore not effectively developed within the industry. 

Virtually all the numerous rules and standards the MMS enacted or adopted by reference from private sources are prescriptive and technically detailed, and require company compliance in the design and conduct of a proposed operation. Most were originally developed by API as voluntary standards for discretionary use by its member companies, and when later adopted or formally incorporated by reference by MMS, became mandatory and enforceable as MMS rules. This reliance on API enabled the MMS to capitalize on API s technical expertise and ability to gain industry consensus. But it also created a situation where the regulated industry can be said to have determined the pace of risk reduction in offshore operations and which, in the case of deepwater operations, lagged behind the risks being encountered. 

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