Leading Manufacturing Companies – A GE company – Baker Hughes

The entire manufacturing and supply chain of Baker Hughes (A GE company) is set in motion once the sales team clocks the order. The team is then required to draw up a process which includes supply chain, manufacturing, installation and commissioning. There are two major components to be looked at — upstream and downstream. The former involves drilling in subsea/surface, extract the oil & gas using OFE (Oil Field Equipment). The mid-stream and downstream involves moving it from the base for processing, which means to the refinery, petrochemical plant, fertiliser plant, or for power consumption.
Most of the equipment used are OFE and TPS (turbo machinery processes) and numerous other solutions. The cycle time for upstream would typically be 2-4 months after sourcing the equipment that is then delivered to the customer. The downstream and midstream cycle has longer lead times ranging from 10-16 months depending on the complexity of the equipment.
Considering that the oil & gas market is driven by oil prices, and with oil prices falling last few years, there is no initiative by the oil companies to invest. This directly impacts orders. The companies executing orders have to stay competitive both in terms of optimising cost as well as ensuring they have the best capabilities when it comes to delivering equipment. Bringing in efficiency in engineering, procurement, and manufacturing cycle, must be strengthened.