Masters Of Supply Chain Modelling For Haliburton Company: A Case Study

Analysis of the type of project complexity

Discuss about the Masters of Supply Chain Modelling for Haliburton Company.

In April 20^th 2010, a Haliburton Company sent an email from the Deepwater Horizon in the Gulf of Mexico. The task of completing an oil derrick in that part was completed and the oil derrick raised 20 stories above the top deck. The 33,000-ton deepwater horizon had centred over a well in the high areas. The main problem with the rig was that it had been a blast furnace due to the excessive heat. The drilling of oil is always a tough and dirty process and the heat that exists with the other factor had been a cause of difficulty for most people. This led to the explosion of the rig and a thorough research need to be undertaken to identify the cause of explosion of the rig.

The research is done on the complex factors that have led to the blowing up of the rig and the manner in which it future actions can be taken so that such occurrences are not repeated. The research of the case study will be done using the Diamond Model suggested by Porter and the application of theories such as the power assisted programme management. The strengths and limitations of the tools and concepts related to the research are also undertaken.    

According to Riasi (2015), the application of certain models and theories can help in reducing the complexity of a project. It can provide a complete analysis of the progress of the project and the manner in which it can be used to solve the complexity. Thereby, the use of the Diamond Model can help in understanding the risks that may be involved in undertaking a project. As stated by Fainshmidt, Smith and Judge (2016) the Diamond Model can assist in analysing the risks that exists in a project and propose methods to mitigate the risks. The outcomes of the risks are predicted in the form of uncertainty, unpredictability and social culture related to a particular project.

Holtbrügge and Friedmann (2016) stated that the four dimensions of the Diamond Model could be used to understand the abstract factors that exist in an organisation. The four dimensions includes novelty, pace, technology, and complexity. The concept of novelty is to measure the new and fresh ideas so that the role it may play in a particular project can be analysed. Novelty can be further classified into three types that include derivative, platform, and breakthrough in which every step contribute in the development of a project. According to Wu, Xiao and Song (2017), the derivative feature helps in improving the existing the product and with the assistance of the platform, the generation can use the new products and create ideas for future product lines. At the same time, the breakthrough denotes the introduction of new products in the market.

Novelty Dimension

In the case of the oil derrick in the Gulf of Mexico, the application of Novelty can help in the development of fresh ideas so that incidents such as explosion do not take place. The incident that took place was mainly due to the excessive heat that was emitted from the blast furnace resulting the explosion and the loss of lives. In this regard, it can be said that new ideas can be formed that may highlight the development of the project (Lee et al., 2018). A platform can be build so that the new generations can build products that may help in the cause of reducing any type of explosion within the oilrig.

Wilson (2016) is of the opinion that a breakthrough idea needs to be implemented in the oilrig so that accidents can be mitigated. It has been seen that information regarding the accident was gathered immediately after its occurrence and based on the information; a proper mitigation can be formulated. For example, the breakthrough can be in the form of providing the oilrig with a heat censor radius that helps in denoting overheat condition of the rig. Therefore, it can be said that the application of novelty can help Haliburton Company to prevent any further problems that may arise in the oilrig.

As stated by Altfeld (2016), the second factor of the Diamond Model is the pace that defines the timeline of the project. The timelines denotes the exact time within which a project need to be completed and the time within which any new technology can be applied. The pace can be classified into various divisions that are used to understand the urgency of a project. The division includes regular, fast competitive and time-critical. The delaying of a project denotes that it is not critical to complete a project on time. According to Remington and Pollack (2016), the time of a project is an important aspect as the budget set for a completion of a project may increase with the increase in time. Time critical denotes the complexity of the critical time in a project.

In the case of Haliburton Company, the application of pace need to be of time critical as it is important that the safety of the oilrig and the workers are taken into consideration. The emergency of implementing proper mitigation techniques such as the implementation of heat detectors or checking the equipments on a regular basis is important to prevent future accidents occurring in the oilrig (Badiru & Osisanya, 2016). Therefore, it can be said that the critical time for the completion of the mitigation technique is important for the existence of safety at Haliburton Company.

Pace Dimension

In the modern day, technology plays a crucial role in the development of business. According to Whyte, Stasis and Lindkvist (2016), the technological dimension had been predicted as important in future during the application of the Diamond Model. The technology dimension of the model provides emphasis on the type of development that may take place in an organisation. For example, using a low tech may provide the company with an opportunity to conserve its finances and ensure that with time it can be upgraded for better assistance. As stated by Davies et al. (2017) technology can be low-tech, medium-tech, high-tech and super high-tech depending upon the level of technical assistance to be used by the companies.

For Haliburton Company, the level of technology for controlling any future accidents in the organisation may include a medium-tech or super-tech. For example, super-tech items need to be used by the company so that heat can be detected and with its detection, the heat can be mitigated. The installation of sensory cooling system is considered as super-tech mainly because of the fact that the excessive heat needs to be detected by the system automatically (Ell et al., 2017). Manual controlling of the heat cannot be done, as it is not possible for human beings to remain present in the heating room. At the same time, developing tools such as drones that can help in digging the oil can be considered as the effective use of medium-tech. Monitoring of the oilrig can be done with the help of the technical factors present within the company.

Browning (2014) is of the opinion that the complexity can be referred to as the measurement of the complexity of a project. The manner in which competing a project requires a company to denote measurement of finances, resources and risk mitigation factors are considered as complex mainly due to the constraints it may face. Complexity may be defined in three stages that includes assembly, system and array. The implication of the assembly can be done in a subsystem that requires single function. At the same time, the application of systems denotes a collection of subsystems that are required for the completion of a project. A common mission is set that denotes the dispersed collection system that exists in a project. The application of these three factors helps in identifying the challenged areas that exists in a project.

The application of the complexity in Haliburton Company can have a significant impact in the development of equipments. The manner in which the application of the sensory cooling system can be implemented can help the company to focus on other areas of business. However, the complexity lies in the fact that it needs to be installed keeping in mind the subsystems that may exist in a company. The common mission that is set in the organisation is to ensure that the oilrig does not have any factors that may hamper its progress in the industry.

Technology Dimension

Policies of an organisation can help it to gain power, influence and politics that drive the interest of the stakeholders. The reason behind this is that various aspects of outcome and performance can be related with the existence of the power, influence and politics that exist in an organisation.  The viewpoint of the employees in relation to the attitudes, behaviours and performance can help an organisation to continue with the development of effective policies (Altfeld, 2016). In the case of Haliburton Company, it is necessary that the policies of the organisation regarding the health and safety of the workers be considered based on the policies it implements.

It is important that Haliburton Company maintain a common relation with the stakeholder that can help it to identify the potential differences that exist in the management of oilrig in two different companies. For example, a benchmark process can be identified that may help Haliburton Company to identify the strategies adopted by a reputed company such as British Petroleum. Thereby, a commonality of the purpose related to achieving the objectives of the organisation can be done. The case study signifies that the management of Haliburton Company have to deal with investigating the cause of the explosion by taking in statements from the witness. Hence, it can be said that it is necessary that the company that the company apply the concept of gaining power so that it can get to develop itself in the industry.

The power bestowed upon the managers need to be used judiciously so that they can encourage the employees into taking proper decisions. It has already been seen that with the application of novelty, Haliburton Company need to ensure that new ideas are developed so that the new generation can take the company into improvement. Organisational changes need to be implemented so that the Haliburton Company can ensure the growth and development of the employees (Philbin, 2015). Application of change management technique can help in motivating employees and at the same time ensure that the structure of the organisation is changed.

The application of politics within the organisation can provide continuous exchange of information between the employees and the employers. The outcomes and events of the changes results can force an organisation to develop goals and objectives required for success within the market (Pandya, 2017). Therefore, it can be said that in the case of Haliburton Company the concept of politics may not be implemented in the company as the commonality of a purpose is presented in the organisation. Hence, to implement changes in an organisation, it is necessary to implement the purpose of politics and ensure that the involvement of the stakeholders is considered while implementing the changes.

Complexity Dimension

Haliburton Company needs to ensure that the employees are well informed about the changes that are required to be implemented within the organisation. It has been seen that the major cause of the accident in Haliburton Company is due to proper management of resources. It is an important factor that the management of the organisations develop plans to make decisions regarding the safety and security of the company. However, the decisions led to the cause of operational problems that were endemic to the working culture practised in Haliburton Company. As stated by Kerzner (2017) the application of pluralistic approach through the power to make decisions can be considered as one of the main considerations required in Haliburton Company.

The application of change management techniques can help in the effective development of projects. According to Lock (2017), change management need to be implemented keeping in mind the require changes in the form of technology or production of a work. In the case of Haliburton Company, the implementation of technology that can help in identifying the excessive level of heat in the company can be a change management strategy that can be implemented. Haliburton Company can influence the employees so that they can embrace the changes implemented in the company. The power of the managers can be used to gain perspective of the though process of the employees.

According to Jones (2017), the influence of the stakeholders can have a significant impact in the development of an organisation. Therefore, it is necessary that identifying the stakeholders and managing its powers is necessary for the development of Haliburton Company. The internal as well as the external stakeholders of the company need to be influenced so that support can be obtained. For example, the Government can provide financial support to Haliburton Company so that it can progress in the industry and ensure that the safety of the employees is maintained. At the same time, it can be said that the stakeholders are also responsible in setting a platform from which new and developed product can be launched.

Thereby, the analysis of the power assisted project management denotes the importance of stakeholders, power and politics within an organisation. The application of changes in the management can help the company to continue with its pursuit of implementing technical changes. Kerzner (2015) stated that the internal and external stakeholders contribute in the development of a company and the power vested among the stakeholders help it to prevent the occurrence of any political problems. Therefore, it can be inferred that the scope and complexity of projects help in the implementation of changes within the organisations.

Conclusion

Therefore, it can be concluded that the explosion in Haliburton Company is considered as one of the worst tragedies to occur in the oil field industry. The application of the diamond model has been used to trigger the issue into four directions giving emphasis on the important aspects that Haliburton Company need to undertake. The effectiveness of the application is that it helps in analysing the problems and make strategies that can be effective for solving the problems within the organisations. The plotting of the problem can be done with the help of the model and identify effective criteria necessary for the adoption of the model. However, there are certain limitations that need to be considered before the implementation of the process. The fact that the Diamond Model does not provide proper analysis of the factors required for changes can be a limitation of the company. At the same time, the application of the change management model can help Haliburton Company to continue with the development tactics required for the completion of the technology. Therefore, it can be said that the effective application of the Diamond Model and the change management model can help in preventing any future accidents in Haliburton Company.

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