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Determined by adding to the existing drilling capacity the fraction, of the difference between the forecast capacity and the existing capacity, that managers are willing to purchase.ъTime between the present and the time of the drilling capacity forecast. This should take into account the delays in acquiring productive capacity as well as the delays in that new capacity's effects on business unit productivity.VA multiplier used to test the effects of various forecast horizons on long term drilling performance pressure. If management is willing to purchase all the capacity that is required, and if this multiplier is set such that all the delays in the system are accounted for, then the long term drilling performance pressure should return to 1.ВSince business unit performance is initially in equilibrium, the initial BU performance trend (fractional rate of change) is 0.цThe initial fractional rate of change of perceived drilling productivity required. Since the model is initially in equilibrium, the initial trend of perceived drilling productivity required (fractional rate of change) is 0.bThe BU performance goal determined by multiying forecast BU performance by the stretch factor.VThe maximum drilling capacity at current levels of drilling performance pressure.jThe level of business unit performance cannnot be known instantaneously, but is perceived after a delay.~The time required to perceive business unit performance; includes measurement and reporting, as well as perception delays.bThe IDO's perceptions of the drilling productivity required to meet the BU's performance goal.VThe perceived fractional rate of change of perceived drilling productivity required.~The time required for the IDOs to perceive the drilling productivity required by the BUs to meet their performance goals.fthe time required for the capacity owner to perceive the trend in drilling productivity required.кThe degree to which the physical drilling capacity must be utilized in order to meet the perceived drilling productivity required to meet stretch the stretch BU goal.NThe fractional rate of change of perceived drilling productivity required.╬Actual drilling productivity in kilometers drilled per quarter. It is the lesser of the drilling productivity required to meet BU performance stretch goals or the maximum drilling productivity possible.>The fractional rate of change of business unit performance.^the time required for the business to perceive the trend in its business unit performance.КThe forecast of drilling productivity required. See Equation 16-2 on page 640 of Sterman, John (2000) Business Dynamics. McGraw-Hill.ЖThe forecast of business unit performance. See Equation 16-2 on page 640 of Sterman, John (2000) Business Dynamics. McGraw-Hill.>The perceived fractional rate of change of BU performance.Тthe amount of time chosen by the capacity owner over which to determine the trend (frational rate of change) of drilling productivity required.>The length of time over which the stretch factor is applied.^The factor by which forecast BU performance is multiplied to obtain the BU performance goal.ОTht ratio of the business unit performance goal to reference business unit performance. A normalized measure of business unit performance.┌Given a specific drilling performance pressure input, this is the output from the eospomcuf function. This output factors the normal maximum capacity utilization multiplier to produce maximum capacity utilization.ЄDrilling performance pressure as it is actually felt by the IDOs. Note that sustained high values of desired drilling capacity utilization create more drilling performance pressure than do spikes in desired drilling capacity utilization.ЪPerformance pressure indicated by desired capacity utilization. Because desired drilling capacity utilization is normalized, the same value is used.vThe ratio of drilling productivity to reference drillling capacity. A normalized measure of drilling productivity.║Management may choose to purchase all of the difference between actual capacity and forecast capacity, or some portion of it. This is the fraction that management chooses to purchase.2Financial performance of the business unit (BU).>The maximum capacity utilization possible at current levels of drilling performance pressure. Performance pressure reduces the maximum capacity utilization possible by causing reduced maintenance of drilling equipment, excessive overtime for long periods, and lack of adequate preparation for drilling operations.bThe supply line is adjusted towards desired supply line over the supply line adjustment time.bBusiness Unit (BU) financial performance that should result from current drilling productivity.╩The sum of the desired arrival rate and the adjustment for the supply line, which keeps the supply line of drilling capacity on order aligned with the level required to yield the desired arrival rate.╢The rate at which new capacity is desired to arrive, given the expected capacity depreciation rate and the adjustment to bring the stock of capacity in line with desired capacity.vA third order drilling capacity acquisition delay is assumed for the ordering and construction of drilling capacity.ЖThe average time over which owners of drillling capacity seek to close the gap between their desired and actual drilling capacity.кThe required supply line of physical drilling capacity on order and under construction, given the desired arrival rate and the expected delay in delivery of capacity.RThe expected depreciation rate is assumed to equal the actual depreciation rate.КThe time period over which the supply line of drilling capacity on order or under construction is adjusted to the desired supply line.┬Conversion factor for translating drilling productivity ratio into an indicated BU performance ratio. Because we are more concerned with behavior than with specific numbers, this is set at 1.rThe drilling capacity order rate is constrained to be non-negative (cancellation of orders is not permitted).6The maximum capacity utilization multiplier factor as a nonlinear function of drilling performance pressure. At low levels of performance pressure (close to 1), the effect is minimal. At high levels, maximum capacity utilization can actually be reduced to less than normal physical drilling capacity.\!\!fThe maximum possible capacity utilization factor under normal drilling performance pressure (= 1).КThe fraction which, when added to 1, gives the factor by which forecast BU performance is multiplied to obtain the BU performance goal..The time when the stretch factor is applied.nThe time required for performance pressure to respond to changes in desired drilling capacity utilization.jThe drilling capacity lifetime determines the rate at which drilling capacity decays and is discarded.VThe amount of time required for ordered capacity to be delivered and come on line.NThe time required for drilling performance changes to impact BU performance..The average lifetime of drilling capacity.:Time between the present and the time of the forecastRThe IDO's physical drilling capacity, including drilling operations personnel.BThe physical drilling capacity on order and under construction.BU performance at the start of the simulation before stretch BU performance goals are implemented. Because we are interested in the modes of behavior rather than exact $ figures, this is set to 1 $/quarter. This could be scaled to match more realistic BU performance.fDrilling capacity in kilometers drilled per quarter when in equilibrium at the start of the simulation, before stretch goals are implemented, when drilling performance pressure is 1. 1 km/quarter is chosen as its value because we are interested in modes of behavior and not specific values. This could be scaled to match more realistic drilling capacity.Оthe amount of time chosen by the business over which to determine its fractional rate of change of performance (trend of BU performance)." Simulation Control Parameters&The final time for the simulation.&The initial time for the simulation..The frequency with which output is stored.&The time step for the simulation.╠f АЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎАЎА?АЎАЎА?A└@= з?AАЎАЎАЎАЎаAАЎАЎАЎА?АЎАЎАЎаBАЎАЎАЎАЎАЎАЎАЎАЎАЎ@АЎАЎАЎАЎАЎАЎАЎА?А?АЎ╚B A@@@@А@А?>А?А?АЎАЎ /б7L┐$$╚А?╚$з?S║?=╛?('┬?yu╞?╩├╩?сЧ╥?┬г┘?Ъу?╖╤ь? ї?@А?[Cy?Egq?Тщl?| e?f1]?¤ЎQ?╢Ж2?n?yў>чP▐>Э╫╨>═╠╠>///---\\\ :GRAPH OVERSHOOT_&_COLLAPSE :TITLE Repeated Overshoot & Collapse :SOFT-BOUNDS :SCALE :VAR Perceived drilling productivity required :Y-MIN 0 :LINE-WIDTH 3 :VAR Physical drilling capacity :Y-MIN 0 :LINE-WIDTH 3 :VAR Drilling productivity :Y-MIN 0 :LINE-WIDTH 6 :VAR maximum drilling productivity :Y-MIN 0 :LINE-WIDTH 12 :SCALE :VAR Drilling Performance Pressure :Y-MIN 0 :LINE-WIDTH 3 :SCALE :VAR BU Performance :Y-MIN 0 :LINE-WIDTH 6 :GRAPH DRVTN_OF_PRFRMNC_PRSSR :TITLE Derivation of Performance Pressure :SCALE :VAR BU Performance :Y-MIN 0 :LINE-WIDTH 2 :VAR forecast BU performance :LINE-WIDTH 2 :VAR BU performance goal :Y-MIN 0 :LINE-WIDTH 2 :SCALE :VAR Perceived drilling productivity required :Y-MIN 0 :LINE-WIDTH 2 :SCALE :VAR Desired drilling capacity utilization :Y-MIN 0 :LINE-WIDTH 3 :VAR Drilling Performance Pressure :Y-MIN 0 :LINE-WIDTH 6 :TABLE DRLLNG_PRFRMNC_PRSSR_TBL :TITLE Drilling Performance Pressure Table :PRETTYNUM :PRINT-EVERY 5 :X-MIN 0 :X-MAX 80 :TIME-DOWN :FIRST-CELLWIDTH 12 :CELLWIDTH 12 :FONT Times New Roman|12||0-0-0 :VAR Drilling Performance Pressure :L<%^E!@ 1:Current.vdf 9:Current 22:$,Dollar,Dollars,$s 22:Day,Days 22:Hour,Hours 22:Month,Months 22:Person,People,Persons 22:Unit,Units 22:Week,Weeks 22:Year,Years 18:Drilling performance 11.vsc 20:Drilling performance 11.lst 15:0,0,0,1,0,0 19:5,0 27:0, 4:Time 5:time chosen to determine trend in perceived drilling productivity required 24:0 25:80 26:80