Académique Documents
Professionnel Documents
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in focus
publisher
Rick Hudson
editor
Chris Owen
copy editor
Scott Parker Bogue Roux Carroll Robert Denton Benny Foreman John Hamill Rick Hudson Ray Podesta Bruce Sumpter
photographer
Ralph Cole
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RL Hudson
2000 West Tacoma Broken Arrow, OK 74012 PHONE: 918.259.6600 FAX: 918.259.6700 TOLL FREE: 800.722.6766
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PRICING PRESSURES
Manufacturing costs continue to increase.
In the classic Bill Murray movie Groundhog Day, someone asks Murrays character, Do you ever have dj vu? He replies, Didnt you just ask me that? The
recent round of price increase notices arriving here at RL Hudson feels a little like dj vu. I look at the pile of letters and ask myself, havent we already done this? A few years ago, a runup in the cost of oil and other commodities drove prices up on everything from raw materials to shipping. As a result, for the first time in 27 years, we implemented a price increase of our own. That was followed by a severe recession that held prices in check for a period. Now that the economy has recovered somewhat, costs are going up again. Commodity prices are on the rise around the world. We are seeing aggressive price increases from suppliers here in the US, in Asia and in other regions. There are several factors driving these increases worldwide, but in China, where we are seeing some of the most significant increases, there seem to be four key drivers: labor, dollar devaluation, raw material costs and domestic demand. LABOR Workers are demanding better pay and better working conditions, and they are getting them. Union membership is spreading rapidly and government policy is encouraging higher wages. As a result, manufacturing wages have gone up nearly thirty percent in less than two years. DOLLAR DEVALUATION Over the past four or five years, the RMB, Chinas currency, has gained more than twenty percent in value as compared to the US dollar. The figure is six percent in the past twelve months. That means that it takes more dollars to buy Chinese goods than it used to. RAW MATERIAL COSTS The cost of polymers and other ingredients that make up a synthetic rubber compound has been increasing for more than a year. The price of some of our materials has increased by one hundred percent. Some of this volatility is due to the price of crude oil which provides a number of key ingredients for rubber, but demand also plays an important role. DOMESTIC DEMAND Over the past several years, the Chinese government has adopted an aggressive strategy of boosting domestic consumption of goods.This has led many factories to focus less on the export market and more on the market at home. It has also led to more demand for raw materials, which has driven up prices. DOES CHINA STILL MAKE SENSE? China became the worlds manufacturer largely because of the huge price advantage it offered. As prices increase, its fair to ask the question: Should we be looking elsewhere? At RL Hudson, we have a diversified international supply base and are always looking at new sources. But while we produce products in the US and a number of other countries besides China, we find despite increasing costs that China continues to offer our customers unique value. That value includes wages that are still very low compared to other industrialized countries, a sophisticated manufacturing, technological and logistical infrastructure, and strong government support for industry. We at RL Hudson will continue to watch these developments closely. Through our Account Managers and Territory Managers, we will stay in close communication with our customers. Everyone hates price increases. We know that. If such a step becomes unavoidable, we will do all we can to minimize the impact on our customers.
RL Hudson COO, Roux Carroll talks about the increasing cost of manufacturing rubber and plastic products.
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Benny and Bruce discuss ways RL Hudson design engineers can help customers save money by consolidating multiple parts into one.
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can. People in every position in our company voiced their opinions about these ideals. We condensed their comments into the statement: At RL Hudson, we do the right things right.
CUSTOMERS FIRST
We take care of customers no matter what it costs.
A few years ago we met with all of our employees in small groups to hear their thoughts on how we could improve our company. We asked them what they believed we really stood for as an organization. Evaluating the feedback, the common theme was that all employees embraced these ideals: 1) At RL Hudson we believe in doing the right thing, meaning putting principles ahead of profit; and 2) we believe in doing things right, meaning we believe in giving our customers the very best not just good enough, but the best products and service we possibly I like it because it honestly reflects the values on which we built our business. And to see that those values continue to permeate the culture of our company after three decades is very satisfying. Thats nice, you may be thinking, but what really makes RL Hudsons values different from anyone elses? Everyone talks about customer service and how they value their customers but, the one place you can always find the truth about a company's values is their checkbook. If you want to know what an organization really cares about, look at how they spend their money. At RL Hudson we continually invest in our ability to serve our customers. We put that ahead of everything else. When you visit our headquarters, youll see it everywhere. We invest in our people, in training, in systems, equipment and R&D, so we can provide better value and service to our customers.
There is one place you can always find the truth about someones values: their checkbook.
Highly skilled people throughout the company use sophisticated systems not just to meet, but to anticipate the needs of our customers. Im constantly gratified by the stories I hear of people working creatively and proactively to solve problems for customers. Ive never heard anyone say, Thats not my job or Its not my problem.Thats true in every department, especially our Demand Management group. Our Demand Management team is made up of professional supply chain specialists who manage an incredibly complex web of logistical challenges to keep parts flowing to customers despite constantly fluctuating demand and lead times (you can read more about this on page 9). Investing in people, systems and infrastructure is extremely important, but sometimes it just isnt enough. Hiccups occur, creating quality or production issues; its how we react that sets RL Hudson apart. Fortunately, the hiccups are rare here, but they have happened. And when they have, weve always put our money where our mouth is, doing whatever is required to fix the problem and to minimize the impact on customers. We do this regardless of what it costs. We take care of the customer first, and worry about the cost after the problem has been resolved. Thats doing the right thing!
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product profile
VIBRATION ISOLATION
We design products that keep vibration in check.
With all due respect to the Beach Boys, the vibration isolation experts at RL Hudson believe theres no such thing as good vibrations.
Many mechanical systems have a limited tolerance for vibration. Left unchecked, vibration creates noise, causes user discomfort, loosens fasteners, damages seals, and leads to fatigue-induced failure. RL Hudsons vibration control products help eliminate problems created by this unwanted shake, rattle and roll. BUMPERS When a moving object contacts a stationary one, its speed instantly becomes zero, sending a shock wave through both objects. Bumpers reduce the peak force exerted on a component by deforming under impact load. CUSHIONS can absorb shock, reduce the transmission of vibration, or distribute applied forces over a larger area. In mechanical systems, they are often used where there is little or no relative motion between two objects. DAMPING PRODUCTS absorb and dissipate energy from vibration, shock, or impact. Bumpers and cushions may or may not also perform a damping function. ISOLATORS are used to separate one or more components from a source of vibration. An isolator may simply allow two mechanically-linked components to vibrate at different frequencies, without absorbing any energy itself, or it may also be designed to absorb some energy. SHOCK ABSORBERS usually consist of one or more closed cylinders that each contain a piston and oil. The piston contains holes, valves, or both, to allow a restricted flow of oil as the piston moves in response to shock, impact, or vibration. SPRINGS store mechanical energy but do not absorb or dissipate energy. RUBBER SHEET has long been used as a sound and vibration damper under equipment supports and machinery bases.
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ON THE COVER: Clockwise from top: Allison Woods, Sheila Lawson and Vicki Reid. Photographed by Ralph Cole.
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In the heart of the RL Hudson headquarters is a group of a dozen or so offices filled with people who play a vital role in meeting our customers needs.
The department is called Demand Management, and they are very dedicated to what they do. Sheila Lawson, the Director of Demand Management, sums up the mission of her department this way, We work our tails off to meet the customers needs. She could have talked about overseeing the production and delivery of thousands of parts for hundreds of customers, or the challenges of working with factories all over the world. She could have explained the intricacies of interstate and international shipping, or any number of other important tasks. But, like everyone at RL Hudson, Sheila understands that no matter what anyones specific job may be, everyones job is taking care of the customer. Were not perfect; we have problems and glitches like any other supplier. The difference to me is that we are focused on doing absolutely everything we possibly can to give the customers what they need every day,Sheila said. There are four specific positions in Demand Management: Project Manager, Buyer/Planner, Demand Analyst, and Account Manager. Like gears in a machine, each team member works closely with the others to accomplish the departments mission. PROJECT MANAGERS get the ball rolling on each new part. They are responsible for every detail as a new part goes from concept to production. Project managers work internally with Hudson engineering and quality staff. They interact externally with engineering, purchasing and quality at the customers plant. They also handle communication with the factory as the part is tooled and prototyped. Their job doesnt end until the part receives final approval from the customer and goes into production. At least thats the way it usually works. Lead Project Manager Allison Woods told the story of one Project Manager who heard from a co-worker that a customer was unexpectedly running out of a crucial part. No parts were in inventory and lead time was several weeks. Without the part, their production line would shut down. The Project Manager thought that maybe another of that customers parts might be similar enough to work as a substitute. She stayed late that night, going through images and drawings in the system until she found one that would work. With some modification in our Assembly department, the part did the job and kept the line rolling. Stories like that illustrate some of our best traits, which are flexibility, resourcefulness and responsiveness, Sheila said, Our customers often receive large last minute orders from their customers, and its our job to help them meet those spikes in demand. And thats where our Buyer/Planners come in. BUYER/PLANNERS have the task of ensuring that parts are available when customers need them. RL Hudson Buyer/Planners are highly trained and hold the Association for Operations Management (APICS) Certified in Production and Inventory Management (CPIM) designation. Customer forecasts are just that, forecasts, and forecasts change. Buyer/Planners carefully monitor customer orders and inventory levels. They are sensitive to any fluctuation that might indicate coming changes in demand, and they work to ensure that we are prepared. Buyer/Planners also track shipments to assure on-time delivery from the factory. This includes monitoring shipments coming through Customs. When a ship is delayed in Customs, our Buyer/Planners have been known to have a container offloaded, and get the parts put on a plane to meet our delivery commitment,Sheila said. DEMAND ANALYSTS are responsible for entering orders and compiling all relevant forecast data from customers. They take EDI, web downloads, spreadsheets and faxes and enter the information in our system. ACCOUNT MANAGERS are the face, or rather the voice, of RL Hudson to many of our customers. Theres no frustrating automated phone system at RL Hudson. When customers call with questions or concerns about order status, quality issues, or whatever they may be dealing with, their Account Manager is ready to take the call, Sheila said. We try to be as responsive as we possibly can. We know thats important to customers. Led by the Demand Management department, the RL Hudson team keeps parts moving from factories all around the world, over the sea, on airplanes, trains and trucks, in and out of warehouses, and to the customers production line, on time. Its not an easy job, but as Rick Hudson says, If it were easy, our customers wouldnt need us, would they?
Our customers often receive large last minute orders from their customers, and its our job to help them meet those spikes in demand.
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tech session
BLACK GOLD
In the oil industry, one bad seal can ruin your whole day.
There is an old proverb that tells the story of how a kingdom was lost because of the failure of one small nail in a shoe on the kings horse.
For want of a nail the shoe was lost. For want of a shoe the horse was lost. For want of a horse the rider was lost. For want of a rider the battle was lost. For want of a battle the kingdom was lost. If there were a version of that proverb for the oil patch, it might go something like this: For want of a seal a bearing was lost. For want of a bearing a drill bit was lost. For want of a drill bit, $50,000 an hour was lost. When the drill bit meets the rock, there are no backups. Every component has to do its job with 100 percent reliability. At RL Hudson, we understand that after all, weve been serving the oil and gas industry for more than thirty years. Achieving that kind of reliability in severe service, high performance applications is what this issues Tech Session is about. It all starts with asking the right questions: Whats the H2S level? What is the temperature range? Will CO2 be injected? Whats the maximum loss of compressive modulus the seal can endure and still function? Is wear a factor? What about aromatic solvents and water-based corrosion inhibitors? The specific answers to these questions, and more like them, will lead to selecting or developing a compound that will meet the basic requirements. But we dont stop there. Heres an example. A face seal energizer is a type of O-ring that is used to force, or energize, two metal sealing surfaces together. These surfaces move in relation to each other, so they wear. In addition, they operate in extremely
high temperatures. The energizer is exposed to gases, vapors and liquids that can soften it or cause it to shrink. If the energizer loses its ability to maintain constant sealing force, the result is loss of lubricant and failure of the drill bit assembly. Compression modulus in a typical oilfield seal decays over time, even in the absence of wear or swelling. At RL Hudson, weve developed a proprietary hydrogenated nitrile (HNBR) material that maintains its compression modulus, even in the hostile environment of the borehole, for significantly longer than the maximum service life of a drill bit. Now lets talk about wear. The shaft seal O-rings that protect the downhole journals have to operate in an aggressively dynamic environment of shock, vibration, and heat, and up to a million rotations of the drill string and bit. Excessive wear is a real possibility. The same slow-decaying compression modulus that works to advantage in face seal energizers results in rotating O-ring seals that quickly wear in to a low predetermined level, then effectively stop wearing while continuing to provide a leakproof seal. Particularly in the hostile oilfield environment, material selection is almost invariably a compromise. For example, fluoroelastomer (FKM) compounds show excellent high temperature and hydrocarbon liquid resistance, but at the expense of low temperature flexibility. Given that challenge, the rubber research team at RL Hudson has developed a group of FKM compounds that are priced like conventional FKM compounds, and range from 60 to 90 Shore A, are suitable for use down to -35C, have tensile strengths exceeding 3,000 psi, and show elongation at break of 350% to 750% with no loss of FKMs traditional resistance to hydrogen sulfide, acids, hydrocarbon oils, aromatic solvents, and high temperatures. Added to that is compression set of only 3% after 70 hours at 175C about a tenth of what is usually expected with FKM. For seals, thats a big advantage. Another aspect of high performance and reliability is consistent properties, seal to seal, year to year. Rubber compounds are complex mixtures whose properties can be greatly changed by variations in how theyre mixed. In addition, molding, curing, and postcuring must all be completed under closely controlled conditions. This is particularly true of engineering elastomers such as the FKMs and HNBRs that are characteristic of oilfield applications. To ensure product consistency, RL Hudson designs the compounds, purchases the raw ingredients, and has the materials custom mixed in small batches according to a detailed specification for addition sequence, mixing conditions, mixing time, and mixing temperature. The parts are then molded by custom molders who understand the application and can work in real time with RL Hudsons quality auditors and engineers. For help with your oilfield elastomer challenges, give us a call at 1-800-722-6766.
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11
PA I D
TULSA OK PERMIT NO 1957