Document 0jEL76gprzmoew19jyGDZVGk

CH-25 REV. 1240 E. I. d u Po n t d e Ne mo u r s & Co mp a n y INCORPORATED Ne w p o r t . De l a w a r e 19804 CHEMICALS AND PIGMENTS DEPARTMENT cc: F. B. Bredimus J. R. Gibson L. Deming M. Williams W- Bauer, C&P Newport II Wilmington January 29, 1982 DU PONT CONFIDENTIAL SPECIAL CONTROL To: P. A. Wriede Jackson Lab From: S. A. Dombchik 1981 COST REDUCTION ACCOMPLISHMENTS Attached are 1981 Cost Reduction Accomplishments at Newport totaling $1.7MM vs. 10/80 forecast of $0.65MM firm and $0.8MM goal. These reductions represent 53% of the total site cost reductions of $3.2MM. Most of the accomplishments are shared between R&D and Production. Included are $0.56MM of reduced Technical Assistance. Explanations are included for > 20% deviations from forecast. /at j iono oo o in O' VO VO rH OO in vo o in rH rH oo in o oo in in ro oo vo rH o vo m rH o cn in in o vo ro CM vo in rH ON ** in om in o in in r* rH -- * R&D COST IMPROVEMENT ACCOMPLISHMENT REPORT O 00 ^ r- vo in iH r-i rH O CN x* O ro o CM ** ON rH CM o c m ro ON rH CM o c m ro ON ^ rH CM Vr-O* oo oo CM in o in mO o Ml ro rH <N <*> ro 1 *--' <a 0) T3 H 01 0) H rH <0 01 T3 n rH cn 0 0 p T3 ID p P cn d> d) P A. 01 cn Q oi Hc c 03 CZ cu dP 9 H 0 in 3 cn O o P d) d) w cn 14 H O 0) C 01 c c < 43 0 d) <o >i dl P U 0) c (0 CJ 0) p CJN u EP <0 <v P e a o H 0 .g 3A S 3 o 3 -H C *H P -P 'H 0 M d> <u (1) T3 e d) O <u >4 O CU U lu PI s w Ei ON CM ro rro CM VO 00 CO wON in 00 00 ON ro CO vo * H* ro 00 rH 'w' 00 o vo CO H CM in rH CN m rH CM o CM r**v o vo r* o * ->* 00 vo GO CM in in in rin <1^*. in in <*-- oo __ o "oW oo oo as ra\ o fH CM ^ Ol in o a> o CM CM w rH CO 44 o Eh >i rH rH O' P /a JH 44 P 3 c <u G O EH d) H G P ON w (1) Vh p H a> p 3 O H o 0) 44 G u rH H w cn o rH c H H L| o DUP050145864 N 26484.01 1981 COST REDUCTION ACCOMPLISHMENTS PROGRAM WITH VARIANCES GREATER THAN 20% CPC Pigment Losses ($136M vs. $88M fcst.; $155M vs. $50M Yield}1982-85) Results represent average loss/day weighted for production rates; actual loss/day increased in 1981; additional opportunities identified. Crude Consolidation ($410M vs. $320M fcst.) Improved manpower efficiencies achieved. Finishing Consolidation ($0 vs. $158M Goal fcst.) Work terminated; Investment too high with inadequate return. o Kerosene Reduction ($0 vs. $30M Goal fcst.jSlOOM vs.$150M 1982-5) Double decanter started up - did not reduce kerosene consumption which actually rose 33%; work to remove CPC from decanter IQ-82 is expected to improve kerosene re covery; several causes of kerosene losses were corrected in 1981 to bring usage close to historical levels at year end. Membrane Press ($42M vs. $118M) Presses installed; labor savings obtained; energy, water, and yield savings postponed to 1982 pending installation of improved plates 2/82. Energy ($168M vs. $30M goal; $250M vs.$150M 1982-5) Results obtained from overall economies in CPC operation and minimization of "Dowtherm" boiler use; additional opportunities identified. o Technical Assistance ($117M vs. $0M; $180M vs. $0M 1982-5) Technical Assistance reduced vs. budget and historical levels. DU P050145865 N 26484.02 Low Cost Beta ($210M vs. $400M 1982-5) Product in market development; opportunity diminished. Reduce Substandard ($6M vs. $60M 1982-5) Substandard reduction will occur at Newport, work will allow reduced sales inventories; neither of these items on 1981 cost forecast. DUP050145866 R&D COST IMPROVEMENT ACCOMPLISHMENT REPORT oi I o i oo in in in 00 oo in t t o in a\ O o O P> in o %O CN in rH i0 Z CN Orfl at* 06 O O W CO > o nVi (0 -8 ma O m d o o C< nm> 3 O 1 X! P 0} a) 3 i--I 5 o d) X! mP i--I a W a o o < 06 in o in rH 00 o X r* rH in CM rH > CN o in CM CN o H in rH rH CO H CM o O CO CN o H rH CO H H H "* CM o O CO i--1 CN CO o H | O o O m CN o rH CO g06 o CN o g 10 00 o X m rH SI oo CO oic or* voo oCO o CM oo oo OO oo r* in OO in o in lo CN CM o V0 in in oo in in o 10 V0 m 00 oo rH <Ti o r* rH CM CO CO o in rH CN o CM rH CM rH rH 00 a\ o in rH in o CM rH rH rH CN 00 O o in rH r* CM rH rH rH rH 10 rH o in rH in CM rH rH rH O CM 00 r* rH rH 00 CM CO M1 oo in om CM r- c m H o in CM (U X 4J rd h| P 10 o P cn m r- m3 o o d rH d id H -d d) < cn rH rH 0 Eh >1 p p O d) cn P ex d) < zO 01 >3g 03 o> z c < rH M w >i d> z +> < >i rH rH rH rH to ifl 44 +3 C fclj u 44 a> c c *4 4 Q> X mH < 03 P tjl 0 <D Vi <u (U X o Z 0j c c H 4-> 3 U si TJ o O' s H H C M s d o* H 3 0 03 i c 0 z p s o Q rH V H X 3 d) 06 p <D 3 W -p r--1 < H E D1 H Qw H rH r4 W >1 A M0 Q 0) &4 0 d) H d 0) H Eh p w u tr> p H u 0) 3 0) S3 M 4J CJ o 44 u o H H cn 03 DUP050145867 N 26484.03 o lo 1981 COST REDUCTION ACCOMPLISHMENTS PROGRAM WITH VARIANCES GREATER THAN 20% Sodium Methylate ($75M vs. $124M; $200M vs. $0 1982-5) Reductions implemented late and in only one of two lines due to Production Division concern over depressed yields; $200M additional savings potential exists with further re ductions identified through limited plant trials. Dowtherm ($15M vs. $70M goal; $300M vs. $100M 1982-5) Work delayed-priorities; pilot plant work has de monstrated $100M+ annualized savings potential - basic data complete for II Q/82 MCN Aughorization. $200M opportunity defined to make Dowtherm from lower cost com ponents - will implement in 1982. o Energy ($0 vs. $150M in Firm + Goal; $165M vs. $0 1982-5) Work delayed-priorities; $150M/yr. opportunities identified; at implementation and/or project stage. o Technical Assistance ($446M vs. $0; $170M vs. $0 1982-5) Technical effort reduced vs. budget and historical levels. o Reduce Substandard ($47M vs. $0 1982-5) Additional opportunities identified. DU P050145868 N 26484.04