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Former Member

Use of Project Stock

Hello All - I am working with a Drilling company who currently uses project stock to manage their joint venture well requirements. One of the problems they have is in maintaining control/visibility of their project stock.

The use a generic WBS element (and call it "Long Lead AFE") to purchase all their project stock. It's months later that they will then move it from the Long Lead AFE to the actual well AFE. During the period that stock sits in the Long Lead AFE, they have very little visibility of what's there. Because of the lack of control, they want to discontinue using project stock.

They are now considering replacing project stock with a plant - designated as Long Lead AFE. I think they will be creating more problems than not. Some of the problems/issues I see: 1) Release strategies for new plant, 2) plant to plant transfers when moving the stock to the final well destination, 3) configuration on a new plant, etc etc etc

I would like to hear from everyone on issues they see with using plant as opposed to project stock. And, if you like the idea, I'd like to hear that too!

Thanks

SP

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2 Answers

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    Former Member
    Sep 30, 2008 at 04:35 AM

    Hi,

    One biggest problem with regard to plant stock:

    Purchase requisitions / Purchase ordres / stock are not account assigned and hence tracking materials for the project would be difficult. As a result, project progress reporting would become difficult. Also plant stock materials can be consumed by any project, and in the event of conflicting requirements, there could be anarchy.

    regards

    Murali

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    Former Member
    Sep 30, 2008 at 02:25 PM

    The method which is adopted is the generic one which is used many clients (using Project stock).

    Creating another plant for the pupose of monitoring has to be critically analyzed . u have answer some of the questions like

    1) how many projects are there and have long lead WBS Elements.

    2) how many plants u can create to solve ur problem.

    I think its very difficult to manage/imagine like that.

    But could u please explain more on the "Visibility" issue what client has raised. As there are plenty of report available to track the project stock, for example "PROMAN". using PROMAN u can crtically evaulate the WBS stock.

    Come back soon

    Thanx

    Murali

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