Thread regarding McDermott International Inc. layoffs

COST REDUCTION SHOULD BE IN SUPPLY CHAIN

LAYOFFS SHOULD START WITH SUPPLY CHAIN FUNCTION. THEY HAVE PROBABLY MORE THAN 30 DIRECTORS (OR SENIOR DIRECTORS). EVERYONE IN THAT DEPARTMENT IS DIRECTOR, SENIOR DIRECTOR OR SENIOR MANAGER. IT IS RIDICULOUS. WHY HR ALLOWS THIS?. IN MY NEXT LIFE I WANT TO BE SCM DIRECTOR. THEIR SALARIES ARE ALSO EXCENTRIC. PROBABLY SIMILAR SITUATION WITH OTHER FUNCTIONS..

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Post ID: @11NKtJ8m

9 replies (most recent on top)

As a former SCM employee, the idea to centralize procurement for all projects was fought against by Legacy CBI. The idea of centralized works great for shops and warehouses but not for multi-billion dollar projects, where there needs to be somebody on the project level taking care of every thing.

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Post ID: @11NKtJ8m-8nlr

True, SCM Corp was hit today but no Directors or Sr. Directors were laid off.. why am I not surprised?

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Post ID: @11NKtJ8m-7hlg

It has started. Corporate SCM was hit today. Some teams suffered a 50% downsizing.

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Post ID: @11NKtJ8m-7nte

Who's idea was centralized procurement? Thank you M. H___s and for undereatimating a major project (B_____r) using his benchmarking strategy. This is the same person that voiced to a room full of people to load our shops up as much as possible prior to divesture. Hmmm, that's super ethical.

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Post ID: @11NKtJ8m-6aaz

Oh, cuts WILL be in Supply Chain. And in engineering and project management and field labor and cash management and HR and legal and admins and ...

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Post ID: @11NKtJ8m-6jsm

Agreed and not only in Supply Chain, other functions and parts of the organization are poisoned with heavy titles not allocating their work to projects or development of the company, surely not the only company and surely not the sole cause of the billions in losses.
True that the supply chain department, from a corporate standpoint is an empire of buddies who merely understand the real McDermott (and legacy CB&I) and are in it for their own skin and sound of their voice.
Mr Davila (VP supply chain) and his pals running the function on powerpoint slides with meaningless information, continued failing systems and claiming innovation on what was already attempted in the past but failed and will fail again. McDermott is a project driven company, we cannot run projects as we run a chain factory - category management, amazon prime do not help projects.
Exceptions are the norm on projects - why would they be called "projects" otherwise. Standardization comes true on product lines, not EPC and not without clients driving it.
The supply chain organization has decent dedicated ressources working projects but with the continued bashing of selfish baboons in corporate, the projects lose passion in supply chain and run the business as told by corporate (to the ground).
Time to end the reign of kings and queens and let the real architects and builders do what they do best - deliver projects.

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Post ID: @11NKtJ8m-1taq

Agreed.

I would cut “Directors” of “Division Managers” on all branches of Supply Chain, Procurement and Subcontracts

Onshore. (Oil & Gas and Power). Offshore. Both hemispheres. Worldwide...these might be most useless “repeaters” in the company.

They don’t manage. They just repeat (what managers tell them) to other Directors or Division Bosses. Those Directors and Division Bosses don’t manage or solve problems. They just repeat what people tell them and kick the can down the road.

A company full of indecisive decision makers.

Remember during the combination, DD said he was going to streamline management?

Yeah...Me too!

Good work on bloating your org chart and creating pinch points/log jams/black boxes.

When I grow up, I’m gonna run a company JUST like this one! (Said nobody)

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Post ID: @11NKtJ8m-1ugg

Titles don't matter. Pay doesn't matter. Headcount doesn't matter. It is too late.

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Post ID: @11NKtJ8m-1oad

Absolutely!!!!!!

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Post ID: @11NKtJ8m-nka

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