By Group A1Abhinav Sharma(11P001)

Ishan Agrawal(11P081)Kumar Rahul(11P087)Somak Dutta(11P109)

Dominion Motors & Controls, Ltd

Issues

• Change in schedule of power rates– based on flat rates to rates based on horsepower installed

• Overmotoring• No time frame for change in power fares• Possibility of erosion in market share due to results of field

tests carried out by Hamilton– Dominion’s 7*1/2 hp motor 3rd choice for Hamilton– According to tests, 7*1/2 hp motor enough to generate 70

foot-pounds torque– Spartan and Universal’s 7*1/2 hp motor 1st and 2nd choice– Also 3-5 hp motor enough for fluid lifting requirements

Analysis of AlternativesAlternative No.1

• Proposal : Reduce the price of 10 hp motor to that of 7*1/2 motor

• Recommended as a Short-term(4-5 months) solution for the company

• Will provide company time to study results in detail and engineers to develop new product

• Reduction in prices of 10 hp motors could offset the increase in power fares which can happen anytime now

• Market share maintained

Alternative No.2

• Proposal : Reengineer DMC’s present 7*1/2 hp motor to make its torque at least equal to Spartan’s

• Option 1 : Modify existing 7*1/2 internal motor components but temperature rise would be greater than NEMA standards

• Oil field users could object to temperature requirements not meeting NEMA standards

• Option 2 : Use larger motor frame• Less customer resistance than option 1 as mounting

dimensions not important

Alternative No.2……

• Could lead to – Torque war – Confusion among motor users

• Company’s longstanding policy of not violating NEMA standards will be compromised

• NOT RECOMMENDED

Alternative No.3

• Proposal : New definite purpose 5 hp motor with torque of a 10 hp motor

• Absolute fit for new market conditions• Price same as 7*1/2 hp motor • Low power requirements • Commercial cost($665) lower than 7*1/2 hp motor• Unquestionable competitive superiority and

tactical advantage over rivals• Recommended as a LONG TERM solution

Alternative No.4

• Proposal : Persuade Hamilton that conclusions unduly emphasized obtaining the max. starting torque available

• Bridges’s report stressed on the importance of maximum available torque in oil pumping motor applications

• All 7*1/2 hp motors had torque in excess of 70 • Difficult to change Bridges’s opinion• NOT RECOMMENDED at this point of time

Thank You