For 20 Years of Innovation
"We lost a lot of good people and a lot of momentum. I never want to do that again," Mills tells The Roughneck.
"We learned lessons from our near-death experience in the late 1990s when oil prices collapsed and we grew rapidly, beyond our means," he remembers. "First and foremost it's important to plan and have everyone understand the plan. We lost sight of that. We
also had to upgrade our management skills."
To that end, Kudu got smart. It turned to Lean Thinking and ISO. Lean Thinking & ISO
Robert and Ray Mills contacted Chuck Harrision, a manufacturing consultant and industrial technology advisor with the Industrial Research Assistance Program. An initiative of the
National Research Council, IRAP works closely with small- and medium-sized enterprises, helping them grow their businesses, increase their competitiveness and enhance their impact in the marketplace.
IRAP had previously helped Kudu to hire engineering students for a number of research projects. This time, however, IRAP ushered in major changes for the way the company went about its business. Harrison pointed to the need for “lean manufacturing,”
maintaining a much smaller volume of ready materials and products in order to reduce overall operating costs.
“We don't stockpile inventory on the shop foor anymore,” says Ray Mills. “We have overhead bridge cranes to move inventory as needed. Consequently we have freed up signifcant space. Now that we have room on the foor, instead of contracting out our machining, we purchased our own machine tools, we've trained people and are doing it ourselves.” Ray Mills calls this transformation "High Performance Culture."
Harrison also recommended that Kudu adopt ISO-9001 standards, written procedures to guarantee performance and quality of production. This dramatic restructuring also led to streamlined decision-making processes, which entailed greater participation by
teams of people working closely together.
These changes vastly improved Kudu's prospects. Annual sales are impressive, the frm made three acquisitions (Dynamic Pump, Chriscor Downhole Tools and Marathon Power Units) and has almost no bank debt.
Excellence Recognized
Kudu is now more sustainable, able to survive a nine-month downturn with everyone onboard. And there is the personal touch with each and every customer. Highly trained Kudu personnel make sure that all equipment is properly installed so that maximum results are realized.
At the moment the lion's share of company business is domestic. That said, Kudu is broadening the range of its products and clients in the international marketplace. But there is a learning curve, much like there was in the early days in Canada, to enlighten
customers about the benefts of artifcial lift, especially when reduced production was never a concern. PCPs are novel.
"We really have to work hard to get people to listen, then there is followup. That hard work has paid off since we are the most technically competent," Mills explains. "Whenever there's a tough application, people turn to us."
Going international, most recently to Mexico, has been a business panacea. And the personal touch works best.
"My hope is to continue to grow here at home and internationally,"
Mills acknowledges. "While the Western Canada Sedimentary Basin is mature, there are still opportunities for growth since it makes the best business sense to get more production from existing wells."
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Kudu is the frst choice in artifcial lift through its Progressing Cavity Pumps. |
Kudu, which always focuses on safety and quality, gives back by encouraging the development of educational activities in the communities where its employees and customers work and live.
Kudu's excellence has not gone unnoticed. The National Research Council of Canada awarded the company with the Innovation Insights Award for manufacturing practices. In addition, Kudu was awarded as one of Canada’s Top 50 Best Managed Private Companies in Canada.
Everyone at Kudu is in charge of ensuring that customers here and around the world are raving fans by understanding and meeting their needs through providing innovative PCP solutions, technical support and customer service.
This article frst appeared in the March 2009 issue of The Roughneck.
Enhanced oil recovery methods, such as Steam-Assisted Gravity Drainage (SAGD), Cyclic Steam Stimulation (CSS), steam drive, solvent and electric heating, allow production of highly viscous crude oil at elevated temperatures. "The choice of artifcial lift technique is critical to overall well performance," says Ray Mills, who co-founded Kudu Industries with his father Robert.
Since elastomer technology is temperature-limited far below well requirements, Kudu's solution is the Vulcain™, an all-metal Progressing Cavity Pump (PCP) frst introduced in 2002, that extends the temperature operating limit to 350°C. "The current pump range
cover production rates of 30 cubic metres to 500 cubic metres a day," he explains. "And higher capacity pumps are being developed."
PCPs, with each comprised of a rotor and stator with mating helical profles, are known for simplicity of design and ease of operation. "The spinning rotor moves the cavities up and produces fuid at a constant head and variable rate depending on the rotor RPM," says Mills. "The Vulcain consists of hydroformed metal stator and matching rotor utilizing special metallurgy to resist wear and maximize run life."
Operating advantages include:
• Pumps a wide range of viscosities, temperatures, pressures and fow rates;
• Ability to steam through the pump;
• No rod fall problems;
• Will not gas lock;
• Simple installation and operation;
• Continuous power demand;
• Low maintenance;
• Low internal shear rates (less agitation of fuid); and
• Low Net Positive Suction Head (NPSH).
PCPs, which typically use a third the power of an electronic submersible pump and half the power of a pump jack, have a reduced environmental impact. Lower power consumption means less greenhouse gas associated with your operation. "Our rotary seal packing diminishes the risk of onsite leakage," he says. "And the system's small footprint reduces its impact on the landscape."
Kudu can provide the complete package: Vulcain PCP, Kudu drivehead with oryx seal, torque anchor, optional hollow rods and the PCP Well Manager.
"Our driveheads are manufactured in our ISO certifed facility in Calgary. The oryx seal is a critical element to the thermal package due to its wide temperature range, zero leakage rate and minimal environmental impact," Mills explains. "The PCP Well Manager optimizes production by measuring fow rates, monitoring torque and adjusting pump speed. It utilizes smart well technology that reacts to your well. Controlling PCPs with the Well Manager helps
reduce premature pump failures due to pump off and decreases the feld monitoring of fuid levels."
Kudu Tough Coat – Redefne Your PCP
Tough Coat™ is a revolutionary spray metal coating applied to PCP rotors using advanced proprietary technology. "Tough Coat rotors provide significantly improved resistance to corro-
sion and abrasion compared to the industry practice of electroplating chrome," explains Ray Mills, who has led Kudu through dynamic organizational changes to become a model of Lean
manufacturing. "The result is longer rotor life with less degradation of efficiency over time. The benefits are lower operation expenses and higher production."
Introduced in 2007, Tough Coat rotors, which are excellent in highly corrosive environments, provide long pump life, low operating costs and high resistance to abrasives. "Five years of feld testing proved Tough Coat is unscathed by abrasive and corrosive conditions," he says.
Tough Coat rotors have been used since 2003 for companies such as Harvest Energy Trust, EnCana Corp., Talisman Energy, Provident Energy Trust, CNRL, Rife Resources, Apache Energy, Husky Energy, Nexen, Penn West Energy Trust and Advantage Energy Income Fund.