Industrial Case Study

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Challenge

Norris and Pro Rod are two subsidiaries of Dover Corporation that provide oil and gas exploration and extraction equipment. Among other products, the these companies produce continuous pipe and rod on coils 30 feet in diameter. They entered into a development agreement to build a factory in Shafter CA to better service Central California; but they ran into trouble due to inadequate planning, scheduling, budgeting, and coordination with the City. When Dover came to John Roberts in Houston for help recovering the five acre project from all sorts of delays, John new only one man for the job – Jack Kozakar. Dover hired Jack and he got started on getting the development on track, which included a 19,600 SF manufacturing facility, 400 ft. Gantry Crane; a 3.5 acre yard.

Results

Cost – Jack helped Norris save $456,200 in costs using the following strategies: 

Value engineering and process simplification. 

Simplification of environmental compliance scopes. 

Aggressive bidding for design and construction. 

Segmenting supplemental scopes from the developer’s contract. 

Contract negotiations. 

Negotiating change order reductions. 

Schedule Compression 

High level local government relations.  

Schedule – Relying on experience with similar projects, Jack was able to help his clients with in-field, real time changes in scope that advanced the schedule by 4 months and avoiding an opportunity cost of over $400,000 for Norris and Pro-Rod. Jack met with local permitting agencies and streamlined the permitting of the site and building construction as well as gas and electric utilities. 

Quality – The sophisticated oil and gas men of Norris and Pro-Rod had high expectations for the quality of the factory, in order to avoid any environmental issues and in order to produce the amazingly high quality parts demanded in the oil and gas industry. Every aspect of the site and office interiors had to be perfect, and the project exceeded their expectations and had been a huge success for them.

Success Metrics

Project Value   $ 2,030,000

Additional Value Returned to Client

All Strategies - $ 456,200

Time Saved -   4 months