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"Because of the PMO requirements, there is an exorbitant amount of valves on the backside of the vats in cheese production," explains Tim Tolley, project engineer at Davisco in Le Sueur, Minn. Besides the cost of the valves themselves, additional controls and other equipment must be capitalized. In Jerome''s case, the additional infrastructure required up to 6 feet of floor space to the backside of each vat. Deadhead piping and other redundant equipment clutter the space.A standard, PMO-approved mix-proof valve clogged up in seconds because of cheese-curd particulate, so Sudmo''s engineers adapted a unit with a 4-inch valve. That posed some problems in sizing the leak-detection port. Ultimately, the port was reduced to 2.5 inches to match the CIP port. A 4-inch valve is coupled to a 6-inch body to accommodate particulate flow. FDA authorities reviewed the design and recommended minor modifications, and a year after the project began, the system was up and running. "When assessing our supply chain strategy, we realized the need for a cost-effective option such as SPS Commerce''s enablement program to incorporate suppliers into our electronic business processes," stated Todd Wermerson, CIO of Northern Tool. "The streamlined approach will grant us the benefits of reduced order errors and full electronic transactions while improving our vendor order management capabilities."To date approximately 80 percent of suppliers are still using paper and faxes to communicate with corporate buyers, causing a huge bottleneck in the supply chain. SPS'' automated supply chain integration services help streamline the transaction process, replacing current costly and error-laden methods with a hosted model that increases efficiencies and improves order accuracy for enterprises such as Northern Tool. Now suppliers will be able to exchange electronic purchase orders and invoices with Northern Tool, improving delivery times and payments for both parties. This year''s listing contains 362 jackup units, including existing rigs and announced newbuildings, a decrease of two from last year. The listing excludes: shallow-water units working in inland waters, several rigs of the Former Soviet Union fleet, and those in non-drilling modes. The loss of two rigs results from the deletion of two listings. No additional newbuildings were added.Low crude prices continued to cut offshore operators'' drilling budgets in 1999, as reflected by reduced utilization and dayrates that continued the low levels of late 1998. The U.S. Gulf of Mexico saw rate cuts approaching 50% of early-1998 levels, as did Africa and and Asia. Even the North Sea saw cuts of more than 20%.
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