http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.05
R/$ = 12.32Change: -0.01
Au 1168.78 $/ozChange: -0.02
Pt 1083.00 $/ozChange: 1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 12, 2003

New division seeks to improve equipment performance

Back
Expertise|Africa|Export|Motors|Petroleum|PROJECT|Pumps|Resources|Africa|Angola|Equipment|Manufacturing|Motors|Product|Products|Infrastructure|Motors|Motors|Operations
Expertise|Africa|Export|Motors|Petroleum|PROJECT|Pumps|Resources|Africa|Angola|Equipment|Manufacturing|Motors|Products|Infrastructure|Motors|Motors|Operations
expertise|africa-company|export|motors-company|petroleum|project|pumps|resources|africa|angola|equipment|manufacturing|motors-industry-term|product|products|infrastructure|motors-person|motors|operations
© Reuse this In efforts to enhance productivity among its clients, the local operation of global mechanical seals manu- facturer John Crane has created a division called Performance Plus, which seeks to improve the performance of equipment at its clients.

The concept of providing clients with improved reliability fixed-fee contracts is one that was developed by John Crane’s British outfit, which worked extensively on the oilrigs in the North Sea.

“Performance Plus was developed to improve the life and productivity of total rotating equipment on the oilrigs, by becoming performance based,” explains MD David Stock.

As this approach to managing a plant gains momentum, so too is the Performance Plus business, based on this concept.

A great deal of analysis is required before a reliability fixed-fee contract is reached.

This type of relationship with a customer requires that Performance Plus be seen as part of the team on a project site.

The outcome of this type of contract is to make a particular piece of equipment last longer, Stock explains.

To this end, the contract varies from plant to plant, as operating conditions vary among different operations.

A performance reliability contract can encompass the total rotating equipment at a plant.

This would include everything – from pumps to electric motors.

“The more rotating equipment under Performance Plus control on a site, the quicker reliability will be improved,” Stock states.

A supply contract for mechanical seals would be the lower scale contract for the John Crane business unit. The South African arm of Performance Plus is responsible for the management of the mechanical seals of 6 000 pumps for petrochemical giant Sasol.

In this way, the company simultaneously adds value to its products and its clients’ facilities.

“South African companies are becoming aware of the cost of holding stock at their operations,” Stock notes.

These days, there is an emphasis on keeping stock levels down and improving productivity.

Consequently, local companies now have access to improved reliability performance-based contracts that allow them to shed the business practices that were necessitated when the country existed in isolation from the global economy, says Stock.

Thus, local companies no longer need to retain strategic stock on their premises.

Selling performance and reliability contracts comprises 25% of the international company’s business.

“It is a concept that African business is beginning to adopt,” Stock states.

The expertise generated by Performance Plus’s activity in oil-rich countries, like Saudi Arabia, provides the local division and its clients with the intellectual resources to enhance their productivity and improve the life of their equipment.

However, the experience of Performance Plus and John Crane employees in South Africa also provides the international group with a valuable resource.

John Crane’s local operation falls under the ambit of the Middle East, Africa and Asia (MEAA) operations of the company’s division responsible for Europe, Africa and Asia (EAA).

Stock envisions that Angola will represent a significant amount of the John Crane group’s growth in the West Africa region.

The development in the region will be supported by the company’s operations worldwide. Stock notes that the UK office of the EAA division has technical experience, while the com- pany’s central drawing office is housed in India.

These human resources are supported by the company’s sizeable product portfolio.

Most research and development activity within the John Crane group is undertaken by the global outfit’s US and UK operations.

However, Stock maintains that, although mechanical seals continue to evolve, most change centres around refining existing products, while development is based primarily on market demand.

Product development is aligned to customer demand and the customer base has a tendency to have a conservative attitude to change.

For example, the John Crane Type 1A mechanical seal remains a staple in the product range after more than 20 years.

The international company is now trying to rationalise its range of products.

For many years, the local arm of the company was ignored by its parent company, Stock indicates. However, the South African John Crane, and its Indian and Chinese counterparts, have been recognised as low-cost manufacturing centres.

One operations director is responsible for co- ordinating the manufacturing efforts of these three centres.

John Crane’s Chinese outfit is responsible primarily for low-cost high-volume manufacture, while the local concern produces mainly low-volume high-tech ranges to international petroleum industry standards, Stock explains.

“I believe that South Africa’s future is in exports,” Stock states.

“We have the expertise and the infrastructure to compete with our manufacturing counterparts in the group,” he states.

While India does not have adequate infrastructure and China a history of bureaucracy, South Africa’s greatest challenge to becoming a manufacturer of note is the rand’s recent strength.

“We need to export our products to grow and stimulate the local economy in order to create jobs,” Stock emphasises.
Edited by: candice haase
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Gas News
EXPLORATION Much research is being conducted in South Africa to establish a gas policy, including a Gas Utilisation Master Plan
The South African gas sector is likely to see an increase in mergers and acquisitions among gas producers in 2015, especially during the early part of the year, as the industry adjusts to deal with the effects of the dropping oil price, says North-West University...
TESTING WATERS Farmers situated next to officially identified hydraulic fracturing, or fracking, operations need to conduct baseline analysis of their drinking water before fracking starts
Nonprofit organisation for cancer prevention the Cancer Association of South Africa (CANSA) has advised farmers situated next to officially identified hydraulic fracturing, or fracking, operations in the Karoo, in the Eastern Cape, to finance professional baseline...
EFFICIENT The technology used in the Hydrox Electrolyser reduces the production costs of hydrogen
Gas solutions provider Hydrox Holdings has introduced a new hydrogen production method that reduces production costs by eliminating the need for membranes or expensive electrodes typically required to produce the gas. Launched in December, the Hydrox Electrolyser is...
More
 
 
Latest News
An end to wage negotiations within the local government sector could be in sight as a conciliator’s proposal, setting out a number of settlement suggestions to resolve the deadlock, was expected on Monday. The Independent Municipal and Allied Trade Union (Imatu)...
Development financier Eastern Cape Development Corporation (ECDC) executive Noludwe Ncokazi on Friday said the organisation had the “huge responsibility of ensuring business continuity”, following the resignation of ECDC subsidiary Automotive Industry Development...
South Africa’s second-largest oil refinery, Engen Refinery (Enref), is set to undergo a three-day planned maintenance outage from July 9 as part of an ongoing maintenance programme to ensure that the facility, which delivers a significant portion of South Africa’s...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96