http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.80Change: -0.12
R/$ = 11.06Change: -0.09
Au 1167.10 $/ozChange: -11.95
Pt 1201.50 $/ozChange: -9.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 12, 2003

New division seeks to improve equipment performance

Back
Expertise|Africa|Motors|PROJECT|Pumps|Resources|Sasol|Stock|Africa|Asia|Europe|Angola|China|India|Saudi Arabia|South Africa|United Kingdom|United States|Equipment|Manufacturing|Motors|Oil-rich Countries|Petrochemical Giant|Product|Products|Project Site|North Sea|David Stock|Infrastructure|John Crane|Motors|Motors|Operations|Middle East|West Africa
Expertise|Africa|Motors|PROJECT|Pumps|Resources||Africa||Angola||Equipment|Manufacturing|Motors|Products|||Infrastructure|Motors|Motors|Operations|
expertise|africa-company|motors-company|project|pumps|resources|sasol|stock|africa|asia|europe|angola|china|india|saudi-arabia|south-africa|united-kingdom|united-states|equipment|manufacturing|motors-industry-term|oilrich-countries|petrochemical-giant|product|products|project-site|north-sea|david-stock|infrastructure|john-crane-person|motors-person|motors|operations|middle-east|west-africa
© 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 Plastics and Synfibres News
The South African plastics industry is increasingly becoming part of the global market, states local plastics industry body Plastics South Africa (SA) executive director Anton Hanekom, adding that more trade agreements are taking place, making the import and export...
The Southern African Vinyls Association (Sava) will launch its Vinyl. product label and industry-specific stamp of quality next year to promote local compliant polyvinyl chloride (PVC) products and to ensure that local PVC products, with the Sava-endorsed mark of...
A pilot programme to recycle the coloured or black contaminated polystyrene used in food packaging applications, including fast-food trays, takeaway cups and trays used to package meat and fresh fruit, has been launched in Pretoria through a joint venture (JV)...
More
 
 
Latest News
South Africa’s National Treasury on Friday reissued its amended request for proposal (RFP) for the five-year multibillion-rand project to replace the legacy systems currently in use with an enterprise resource planning (ERP) solution for an integrated financial...
Systems Automation and Management Durban manager Weyers van der Merwe, Richards Bay dry bulk terminal manager Mandla Mpungose and Umfolozi TVET college principal Sam Zungu.
The handover of specialised computer equipment to the Umfolozi Technical and Vocational Education and Training College would address one of the greatest challenges faced by Transnet Port Terminals (TPT) at the Port of Richards Bay – a lack of skills in a highly...
Through hosting the WorldSkills 2014 competition’s mechatronic pre-national finals, industrial control and automation company Festo would promote and support skills development. Festo said the mechatronic competition would give schoolchildren, trainees and students...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
As the City of Ekurhuleni continues its bid to develop the largely industrialised metropole into the continent’s first aerotropolis, executive mayor Mondli Gungubele has committed the city to creating a predictable, stable and enabling business environment in which...
While Ford Motor Company of Southern Africa (FMCSA) did not have “significant issues” with power supply in Gauteng, it was a different story in the Eastern Cape, said FMCSA and American Chamber of Commerce in South Africa president Jeff Nemeth earlier this month....
In 2000, exports into Africa from South Africa represented less than 5% of the turnover of Federal Mogul Motorparts Africa, with sales largely centred around Zimbabwe, Zambia, Malawi and Mozambique. Today, African exports represent 30% of sales, with trade expanded...
The Malawi government has launched a $50-million project to upgrade the Kamuzu barrage, on the Shire river, an outlet of Lake Malawi, which is used to control the flow of water from the lake to the lower Shire area. The project will run from this year to 2017 and...
  Our new Technical and Vocational Education and Training (TVET) Colleges will replace the Further Education and Training (FET) Colleges which have served us for the past twenty years.  The buildings will be the same and most of the staff will be the same but as the...
 
 
 
 
 
 
 
 
 
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