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View Diary: 60 Minutes: Despite damaged blowout preventer, BP cut corners immediately before explosion (212 comments)

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  •  Yes, by saving the companies a (3+ / 0-)
    Recommended by:
    mjd in florida, kefauver, DLisa

    million dollars a day

    •  Fundamental misunderstanding (1+ / 0-)
      Recommended by:
      NM Ward Chair

      I've been a project manager for a large company and when I first started I had the same misperception. I assumed cost drove everything. I was wrong. It's time. It was OK to go over budget as long as the project was brought in on time.

      Here's why:

      1. The daily cost of operating the well is probably as much if not more than the daily cost of the project. Those wells don't operate themselves. They must be staffed 24/7/365 and you have to pay people a lot of money go live on an oil well in the middle of the ocean for months at a time. The lowest paid workers probably make at least $100K/year.
      1. Quarterly revenue projections as a part of their model expect wells to come into production at a specific time. Each day of delay is millions in unrealized revenue for that quarter meaning that the revenue realized will be less than the revenue predicted. That directly affects profits and the stock price. This is the real driver and why time is important.

      So yes time is money, but it's not about containing costs. It's about realizing revenue. That's what makes a Project Manager look good.

      When the power of love overcomes the love of power the world will know peace. -Jimi Hendrix -6.0 -5.33

      by Cali Techie on Mon May 17, 2010 at 11:57:10 AM PDT

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      •  Cali Techie: of the 11 killed I read where 4 were (0+ / 0-)

        working for $60-$75K a year. I believe the driller who died made more than any of the others killed, and his salary and benefits came to about $100K.

        Texas is NO Bush League! LBJ, Lady Bird, Sully Sullenberger, Ike, Molly Ivins, Barbara Jordan, Ann Richards, Drew Brees -7.50,-5.59

        by BlackSheep1 on Mon May 17, 2010 at 02:50:51 PM PDT

        [ Parent ]

        •  I'm not talking about the people (0+ / 0-)

          working for the driller.

          I'm talking about people managing the day to day operations of the well. That's a different crew.

          When the power of love overcomes the love of power the world will know peace. -Jimi Hendrix -6.0 -5.33

          by Cali Techie on Mon May 17, 2010 at 04:09:38 PM PDT

          [ Parent ]

          •  Oh, the people who'll be on the Atlantis-type rig (0+ / 0-)

            once it's a producing well?

            Texas is NO Bush League! LBJ, Lady Bird, Sully Sullenberger, Ike, Molly Ivins, Barbara Jordan, Ann Richards, Drew Brees -7.50,-5.59

            by BlackSheep1 on Mon May 17, 2010 at 10:12:25 PM PDT

            [ Parent ]

            •  Right. (0+ / 0-)

              The ones who will be running it day to day once it's in production.

              When the power of love overcomes the love of power the world will know peace. -Jimi Hendrix -6.0 -5.33

              by Cali Techie on Tue May 18, 2010 at 12:03:51 AM PDT

              [ Parent ]

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