Document 15kxQgZMXx1xxVYZ4K5m9L18q

MEMO R. L. FRANTZ 114 January 10, 1973 To: From: Plant Letter Lists A, B, C, D and E R. L. Yelton Subject: I would like to congratulate everyone who had a part in our 1972 OIP program for making it an outstanding success! The recurring savings generated last year totalled $8, 345, 000, equivalent to 133. 5% of our goal, and were an all-time high for this plant. The number of people who participated in the program last year also established a record, and both those who originated the ideas for improvement and those who put them into effect are to be thanked. This impressive achievement will not permit "resting on our oars" in 1973, however! The $8 million savings were essentially offset by increased prices for our raw materials and supplies, increased salaries and wages, and decreased selling prices for the chemicals and plastics made at Texas City. Thus it is very important that everyone become actively involved in finding ways to eliminate unnecessary costs, reduce losses and waste, improve job efficiency, and so forth, because our struggle to keep the Texas City Plant competitive is an endless one. Thanks again to those of you who did more than your share in 1972. RLY/dh UCC 091062 UCC 09,063 Charge (dJO 4-Xfo OIP MO. (If known) Brady___ Suggeater'a Dept. , 084 E. L. Kiesehnick, G. T. Pyle < , ' Wautlnfl--Oporotlna and Aux111ary Systems 0) Dept. h..<R'L` Frantz V fN y Initials Date* (2) Art* Supt.' i -- i _Ripon*ibi i ity B. L. Frantz Routlng^laintenancs Oopt. Systems (l) Arot Engineer (2) Dept. Head. Initial! (5) AmU. Pit. wpVB. B. Cowser 3) AssU. Pit. Mgr., (4).Plant Controller !A (4) Plant Controller_ t> 0`. * 9lant Controller will eend copy of approved notice to Production Manager. Statement of project or del* Rearrange all blowdown tank vents to go into the vacuum strippers instead of directly to.stripping tanks thereby recovering vinyl chloride previously lost. .Type of Saving!! IX I Annual Recurring) Eat. Proj. Life 1 0 veers. | | Non-ReeurrIng (Fill In thU bo*'if computing project on the OIP bookay . uoo data submitted earl Ur on Form 1708) (Fill in thla box for oil completed projocta) 'ESTIMATED NET SAVINGS 'J Out-Of-Pockat - 't " a r Potenti*l . ^ * Total . - i\ 1V\4,bol i\ *1 FINAL CLAIM OF NET SAVINGS Diit-Of^nekat Potential Total j TOTAL OliiECT 1 !sJ r f'~. jONS* $_ 114.000 , t 114.000 ' ESTIMATED COST ; ' .Hew Capita^ t ACTUAL CQST 1 $-----^ i__ - New Capital . i ' Traneferred Inveetment Noncapital (Expense) i 1 Transferred Investment _.t `i */ nnn X Non-Capital (Expanse) * * 1^,000 DISCUSSIOM AMD SUPPORTING DATA ^Gtva enough information to define the old way and the new way--the change which conatitutea v the OIP. Give coat and savings data and method of calculating aavinga in enough detail to permit underatanding. ' Attach extra ahaat If neeeemary.) V This project-increased the unit vinyl chloride efficiency by 1.4 percent. At the 1973 planned r.jVCl usage of'210 Mkl pounds and the 1973 planned VC1 cost of $0, 0387/pound this savings 'is worth 210, 000, 000 x . 014 x . 0387 = $114, 000/year ' ` ", t. ;0. ~ (* , ,1 f? MS , > f ' * .V y ' , nl L '^ COMPLETED OBJECTIVE CLAIM--01P PROJECT OPERATIONS IMPROVEMENT PROGRAM rTMl , I' / C~1 QhackOnaiI ID losing iwtlci for project already on OIP book*.IAftar-tha-faet new project, i SSjvrstteMa. * SyateeSuspensioneidg. Operations rl Wm Proj. _ _ Naso Vinyls No. 174Tees No.* / O Budgeted? C]Ye Silo Charge(R3 or Order No.), 4-1 rt OIP NO. . (If known) AJ Peters on Suggested* Dept. 084 _Ra*ponaib11 ily R- B. Frantz - H..F* Brady / Routing--Operating and MtiIiary Syataas Routing-Maintenance Dept. Syateaa (1) Odpt. Head R. L.` Frantz t (2) Area -0 -r , ' ' .. j..; ,,fTB.B; Cowser (3) Ase't. if*It. Mgr. Initials Tale u ........ --..... - (l) Area Engineer (2) Dept. Head }3) Asat. Pit. Mgr.. Initiala Date (4) Plant Controller_ (4) Plant Controller_ Plant Controller will eenJ^copy of approved notice to Production Manager, stateaent of Project or Clais Revise homopolymer recipe to include a small amount of ethylene to-.allow aft increase in vinyl chloride conversion while maintaining good dryblend characteristics of the resin. Typo of Sawings* | x | Annual Recurring) Est. Proj. Life __lasers. Non-Recurring (fill In this box if eosplettng project on the OIP books) -.use data submitted earlier on Fora 1708) *, /,' " ' r -j' 1' ^ESTIMATED NETSAVINGS Out-Of-Pocket, f - - - 'Potential Total *^ ' (Fill in this box for all coaplatad projects) FINAL CLAIM OF NET SAVINGS Out-Of-Pocket f _____ I TOTAL DIRECT Potential f|(7_00 Tots I jEfiLAGy COLIS. k 81,200 . t 81,200 ESTIMATED COST - New Capital , '/jtraneferrod Inweataent Noncapital (Expense) ACTUAL COST New Capital f Transferred Investaent Non-Capital (Expanse) 2, 000 DISCUSSION AND SUPPORTING DATA ({five enough information to define the old way and the new way--the chance which constitutes , . the OIP,' Give epat and'savings .data and aethod of calculating savings in enough detail to perait understanding. ` ,;I Attach extra sheet if necessary.) This, revision resulted in an increase in vinyl chloride efficiency of 1.0%. At the 1973 planned VCl usage of 2-10 MM pounds and planned VC1 cost of $0. 0387/pound the savings is worth . .. - - ,jn_. .21iu0,,u0u0u0,v0u0u0 x .'0u1iu0 x..u' 0j3tw87 = $81,,2u0u0//yyear -luA.'VZ'} CJk{ CM' ^:V V* ^ W"-: ; * -- . ??*'>. -' v.Vr-l'*f -y i./ V, -;**: ' * ' *' rr . M c-fr nifi n\ li -.My f13J*I - UCC 091066 SUDMITTED BY* R. L. Frantss 12-18-73 Date * . , , ' *'. (f'Tr , , ' A. ", ;<? ^ '.r'fll y QTl70fc* Rav. 2/6* COMPLETED OBJECTIVE CLAIM--PIT PROJECT OPERATIONS IMPROVEMENT PROGRAM OIP NO. (If known) 1--1 I I--I Chock Onoi |_JClosing notice tr Project alrsady on OIP book*.[XJAftsr-tha-fact now projoct. 08420 -SyctOW-SuspensioBldo. Oporationo . .m.. Tyinyffl No. 174 t. no.* rf r\ u* pPoJ. _ _ / O audootod? Dye* Quo Charge(RJ* op Ordor No.). fi..'a.terl*l A. A. Peterson Suggaater's Dept., 084 _RsponSiblIity . R. L. Frantz P. D. Go*sage, F. L. Johnson, G. P. Keister , E. Kieschnic&*u**"8rj.*r5t!"3 sy*"y , Routing--Maintenance Dept. System* (I) Copt. Hoad 1 rf., L. Frantz ^//Z7 3 (l) Are, Engineer """-- yn|tU|a 5at* (2} Art* Supt.....' v - (2) Dept. Head__ (3) Aaa't. Pit. Mgr. B. Cowser Ass't. Pit. Mgr.. ()-Plant Controller^ 1,1 Plant Controller_ * Hnt Controller will aen^eoov of approved notice to Production Manager. State*ent of-Project or1 cial* Reduce the number of autoclave batches vented to ths air or dumped "to the ground by making refinements * in recipes and process control Type^ofSavIng*^j. Life J.0^years. I I Non-Recurring (Fill In this boa If cdepletlng project on the OIP booksj ue* data aubnltted earlier on For* 1708) (Fill in thI box for a 11 completed projects) ESTIMATED NET-SAVINGS Out-Of-Pocket* '-Potential . Total - `ssuwpum ,, New Capital FINAL CLAIM OF NET SAVINGS Out^)f"+ock*t Potential Total ACTUAL COST New Capital TOT'I. DIRECT 1 $ *fC( fooo LrlTRCY COM3, s ' . 40,600 j 40,600 'Tranaferred'Inweetaent 0 Transferred Investment Non-Capital' (Expense) Non-Capital (Expense) DISCUSSION AND SUPPOBIINS DATA (Give enough infomation to define th* old way and th* new way--th* change which constitutes the OIP. /Give coat and savings data and aethod of calculating savings in enough detail to perait understanding, r Attach extra sheet if necessary.) As a r^sult of these modifications, an increase in vinyl chloride efficiency of 0. 5% was realized. Using 1971 planned VC1 usage of 210 MM pounds and VC1 qost of $0. 0387/pound, the savings is worth: ` ^ 210,000,000 x .005 x .0387 = $40, 600/year " t V ,1 i ` r 4.:*: - i* , -J ." . iX Jt > r ... ^ V j. : V-* Itr UCC 091067 submitted by, R.L. Frantz o*tl2-19-73 rIv.'8, COMPLETED OBJECTIVE CLAIM--PIP PROJECT OPERATIONS IMPROVEMENT PROGRAM I--I ' S |--l Cheek On*11 loioalna notice for project already on OIP books. I X| After-the-fact now projoct* 08420 System Su8pensiotfld. Oporstions _ * w.s ProJ. System Ho. IhioVtnvIfl Mo 174Team No.* / O Budgeted? QYos QNo OhrgC30 or Ordor No.). oip no. (If known) 7 / S.ww.osorfo| P,P* GSSage Suggeeter'a Dopt. , 084 A. A. Peterson, r . i->. Johnson _ReaponaibiI tty R. L. Frantz Bout Inn--Operating snd AuxiliIaarryy Syates*a Routing--Maintenance Dept. Syetems (I) Dopt. HaadR.' L. Frantz y> (l) Araa Engineer ~"' Initiate Data (2) Area' Supt._ (2) Dapt. Haad___ (3) Aset. Pit. Mgr. B* B. Cowser /^ki) Asa't. Pit. Mgr.. (4) piantControll*r_ V (0 Plant ControlItr * Plant Controller will aond copy of approved notice to Production Manaoer. statement of Project or cialo Change the ethylene copolymer recipe to use a dual catalyst system `(LupersoL IP plus DLP) thus increasing the vinyl chloride conversion Type of Savlngai I X | Annual Recurring! Eat. Proj, Life 10 years. | | Non-Recurring (Fill, Id this bos If. completing project on the OIP booksi .use data submitted earl lor on Form 1708) ESTIMATED NET SAVINGS f . dut-Of-Poeket . Potential ' v - Total ' ' - E8Tiltolg.gQST . , Hew Capital Traniaferred Investaient (Fill in this box for all computed projects) . FINAL CLAIM OF NET SAVINGS Out-Of^ock* t . .... TOTAL DineOS J Potential ; j Total ACTUAL COST New Capital :ul;rgy cons. | *j i Transferred Investment . 16,200 i i 16.200 t._ 0 _ ... - Noncapital (Expense) Non-Capital (Expense) 1. 0 * DISCUSSION AND SUPPORTING DATA (Give enough information to define the old way and the new way--the change which constitutes the OIP. Give coat and savings data and method of calculating saving* in enough detail to permit understanding. , Attach extra sheet if necessary.) This change.resulted in a 0. 2% increase in vinyl chloride efficiency. Using 1973 planned amounts the.savings is worth 210,000,000 x . 002 x .0387 = $16,200 per year UCC 091068 submitted BY. R. l. Frantz Date 12-19-73 /l l ' ' I Qy/' COMPLETED OBJECTIVE CLAIM--PIP PROJECT >/6 pV' OPERATIONS IMPROVEMENT PROGRAM p-, c Ontt I__ |olosing notice or project already on OIP book*. (XJAftar-the-fact now project. 08420 SyotoBSuspensionaldp. Oporatlona rf .,h. Vinyfa Noj20 Team No.* 7 U w proj. Budgeted? OTe 0No Charge^ or Order No.). OIP MO.__ (If known) n..A. Shelton. SugoeateHs Dpt. Rponibl iitv ^ L. j rantz X pyls Routing--Operating an<f Aunl | lory Sytm ipt* H*tdd R. L.: Frantz l' * e,,r* u ' B. B. Cowser Pit. Mgr. "O * lent Control lor; 1 Routing--Maintenance Dopt. System* (I) Area Englnoor (2) Dopt. Hood. rcrrtrn* kt*-" Ass*t. Pit. Mgr., Plint Control lor * Plonl Control lor wl I copy of oporovod not loo to Production Manager, tenant of Project or Claim Install a new exhaust fan and revised design bubble caps on No. 7 Drying system to reduce resin loss Typo of Savings* Annual Recurring) Est. Proj. Lifo _10 years. I I Non-Recurring II In thia boa If completing project on the OIP booksj * data submitted earlier on Form I70S) TIMATED NET SAVINGS Out-Of-Pocket Potential Total TIMATED COST New Capital V\ A Transferred Inveetaent Non-CepItel (Expen**) (Fill in thia box for ell completed projects) FINAL CLAIM OF NET SAVINGS Out-Of^ocket Potential | TOTAL Total ACTUAL COST New Capital Transferred Investment Non-Capital (Expense) i 4,000 ` SCUSSION AND SUPPORTING DATA ' (Give'enough information to define the old way and the new way--the change which constitutes the OIP. Give cost and savings data and method of calculating savings in enough detail to permit understanding. Attach extra sheet if necessary.) . n incr ase.of. vinyl chloride efficiency of 0. 1% resulted from this improvement. This tvings is worth (using 1973 planned amounts) 210,000,000 x .001 x .0387 = $8, i00/year . :/ \> " Vi-:L. . '* UCC 091069 submitted BY R* k. Frantz . Date ^2-19-73 i Life 10 vaars. f I Non-Recurring (Fill in this boa If coopletlng project on the DIP books) oss data submitted oarI tar on Fora 1708) (Fill In this box for alt coupIatad projects) ESTIMATED WET SAVINGS . Out-Of-Pocket , K ,, , n' i Potential i Total - ! FINAL CLAIM OF NET SAVINGS Out-Of-Poekat ,24, 400 t___________ 124,400 ESTIMATED COST , Mow Capital -, j 1 ' Traiiafarrad Investment Noncapital (Expense) Transferred lnvaataant Non-Capital (Expanaa) _!____ DISCUSS ION AND SUPPORTING DATA' (Give' anough inforoatton to dafina tha old way and tha now way---tha change which constitutes tha ClP. Clvo coat and'SSvinga data and oathod of calculating savings in anough detail to peroit understanding. - '/vAttach extra sheet if necessary.) Rtecpvery of the' Additional resin caused a 0. 3% increase in vinyl chloride efficiency worth $24) 400/year af l973 planned values (210 MM Ibs/yr vinyl chloride usage and $0. 0387/lb viny-l- chloride)' .> *^ . ' ' ` 1 ^. " p- I .r.'` - 'li TV ' v'\; * k' - .* am v >-*T - >2-- j *.* , ,, ' `a , . '4 x"". UCC 091070 R. L. Frantz 12-19-73 PSfcTjte' rv\ ./:, n* y COMPLETED OBJECTIVE CLAIM--PIP PROJECT OIP NO. f,,- 1 -<y" " x.' ' OPERATIONS IMPROVEMENT PROGRAM ra 0hir9(R50 OfwflWW?** *cr Pro\l*ct tlraady on OIP book*.L_3Aftr-th-fct naw projact* of Ordar No)_ (If knoon) 1b lElSfc Dr.. On. ~` 8uflflaatar Dapt 084 ' ... vr '* . i? ^ f; : nutfdg~Oparatlna and *u**l*^r* Syataaa (i) &*'h^T; R.Xv^rAntr </ " MXJulsti?T^, inr Raaoonaibl I It* ^ * L- Frantz Routing--Halntananca Oapt. Syataaa (I) Aral Enginaar______ Initiala flata (), .Aflp. Supt., -i, ---------; ------------ -- - ------------ l2) *P** H*d---------- Ma.wz>'7&^. ,,r. ... ! 1 r.:.^ *Kj! , - - .<*. f Control Ian '\ , Flint Controllar 1 t. / ,/ 2? .(<) Plant Controllar_ tporovad not lea to Production Manaoar. 'Otatjftaant>f>* Vula Install a magneaol addition system on No. 6 dryer to eliminate . /eyctoAe pldg^ran,dreduce loss of resin " ^ -------- -------- ^-- :---- --------------------------!-------- Ijfflr' r'1` . . Jf / ____ _ ____ lypaa^Saojaga^^^^Annua^^aeurrlngf^at^^roj. Llfa 10 vaara. I 1 Non-RaCurring (FLft l^ tMa boavtf daaplatlna projact on tha OIP booltaj * uaadati aubnI ttad `^aH1ar on Fora .1700) '1'ji. ' -V.'... 'f- - * ESTIMATED NET SA#lNtfS. -V1 .t Out-Of-foekat ' 'Vr*1*1 >2^\ : BimiKCO^T 1 Mat# Oapltal *"' \.. . . - V ' ' Tranafarrad Invoataant y ; MM-Cdpita I (Eapanaa) (Fill in thla box for all eoaplatad projaota) .FINAL CLAIM OF NET SAVINGS Out-Of-Pockat [ total: D:i:C.cn Potential $ ?,10O Total ENERGY ACTUAL COST $ Now Capital Tyanafarrod Invaataant Non-Capital (Expanaa) * * &i 100 % 1 V * * * 3.000-;. 091071 Type of Sowingsi | x | Annual Recurringy Eat. Proj. Lift 1 Q vtin. I I Non-Recurring (Flit In this box.lf completing project on the OIP booksi use data submitted earlier on Form 1706) ESTIMATED NET SAVINGS*'' rt X f'8,/lG/&a Out-Of-Pocket - Potential/ ) /* t \\ / / Tet*> -` ` ESTIMATED COST - V' , New Capital ' >, ' Transferred Investment . Non-Capital (Expense) * \K/oo jN\*-- j jt \ x\ jt i/3.000 (Fill in this box for all conplated projects) .FINAL CLAIM OF NET SAVINGS 8. 100 ACTUAL COST Now Capital Transferred Investment Noncapital (Expense) 8, 100 3, 000 DISCUSSION AND SUPPORTING DATA '(Give'enough Information to define the old way and the new way--the change which constitutes the OIP* Civs cott and aavlnge data and method of calculating savings in enough detail to permit understanding* ' h Attach extra sheet'if necessary*) . , ' ", 1" * V This-Revision,increased vinyl chloride efficiency by 0. 1%, worth $8, 100/year using 1973 . planned amfaunts. 210, OOO^dOO lbs. VCl x.0. 001 x $0. 0387/lb VC1 = $8, 100/year ' v'*:--.... : : - <. * * ., i . ->j. r ! . I . . . .r 'V 'i` ` *< .a , r *5, ,! a* ,/ tf.' V*'* ' r : > v. : , : V- UCC 091072 SUOUITTEO BYi Frantz Data^'1^ m COMPLETED OBJECTIVE CLAIM--Q IP PROJECT Rev. 2/68 OPERATIONS IMPROVEMENT PROGRAM Chock r--| Closing notice for project already on OIP books.|xI After-the-fact new project, r\ QA7 n SSyysotetmemOSUSuSppceunaSlouniiei|dg. Operations W.a.s P.r.o.j.. System No. NameVinvl RRoeaslnitdlglolo.._1l 77d4.TTee.armn NWo* ""oBudgeted? CjYeS UjNo Charge(930 or Order No.) c..nr.t..(.)r. L. Johnson Suggester's Dept.Vinyl_Resi^p0nsibi,ity R. L. Frantz OIP NO. tf-3-l3 (If known) Rout ing--Operat ing and Auxiliary Systems (!) Dept* HeadR* L. Frantz _____ 10 Area Engi Initials Date (2) Area Supt. -- ------ -- - Rout Ing--Ma Intenance Dept. Systems near___________________________ (2) Dept* Mead Initials Oate (3) Ass't. Pit. Mnr.B.B.Cowser /^-S/'(3) Ass't. Pit. Mgr.. (4) Plant Controller_________________________ (a) Plant Control ler_ L. T1 \\ * Plant Controller will send copy of approved notice to Production Manager. Statement of Project or Claim By eliminating the addition of EPO (soy-bean oil epoxide) from the QSAN-7 and QSAL-7 recipe, a savings of approximately $20, 000/year will result. aType of Savinqst GD Annual Recurring Est. Proj, Life 5 years. Non-Recurring (Fill in this box if completing project on the OIP books; use data submitted earlier on Form 1708) (Fill in this box for ell completed projects) ESTIMATED NET SAVINGS Out-Of-Pocket Potential Total * t t FINAL CLAIM OF NET SAVINGS Out-Of-Pocket Potentrsl Total 1' T r ' 1 L*;*- '.w/, . ^ i 20, 600 * 20.600 ESTIMATED OUST New Capital Transferred Investment Non-Capital (Expense) t t ACTUAL COST New Capital " Transferred Investment Non-Capital (Expense) i i * DISCUSSION AND SUPPORTING DATA (Give enough information to define the old way and the new way-*the change which constitutes the OIP, Give cost and savings data and method of calculating savings in anough detail to permit understanding. Attach extra sheet if necessary.) Until May 21, 1973, the practice was to add 1.25 gallons of EPO (soy-bean oil epoxide) to each QSAJ>J-7 or QSAL-7 autoclave charged. On that date it was suggested that the value of this addition on homopolymer resin quality was doubtful and it should be discontinued. (Copolymer resin on the other hand is subject to color problems resulting from decom? position and is helped by the use of EPO which acts as a stabilizer.) The EPO was dis continued and evaluation for months has shown no detrimental effect on quality. During the first six months of 1973, 59-4 MM lbs of QSAN(AL) resin was made. Each auto clave produces approx. 13 M lbs of resin/charge using 1.25 gallons (10.25 lbs) of EPO at 22 / lb. Yearly savings = 2 x 59. 4 MM x 10.2 5 x .22 = $20,600 13 M UCC 091073 jL'DiuTTED BYj F. L. Johnson Q,t,10-lI-73 ____ Rtv* , ** o f\ COMPLETED OBJECTIVE CLAIM--OIP PROJECT OPERATIONS IMPROVEMENT PROGRAM "* 'n Dc,r**&" OIP books, (xjAfter-tho-fact now project. Syitee uo ^ ll" lu" "mg. ^ Operations 3y,t. No. 084 iiL.v;yl R^nfio.l20 Tea* No.*____IP Was Proj. Buda.t.d? Dt.. K|No '0harga(430 or Order No.)_ OIP NO, Ilf known) tl n. P. Keister Sucnaater's Dept. 084 R. L. Frantz touting--Operating snd Auxiliary Syataas BesoonsiMlity R. L. Frantz Routing-Maintenance Oopi, Syataas (1) Oopt, HoodR. L. Frantz (2) --------------------- (j) Ass't. Pit. Hgr, B. B. Cowser # 10 Arsa Englnoor v^7/ (2) Dopt. Hod J (3) Ass't. Pit. Mgr., TnUitU cnr (*) Plant Control lor J* Quin (4) Plant Control|er_ Plant Con^rollor will sand copy of spprovsd not lea to Production Mananar. Statsnant of Project or Claio Increase Suspension Vinyl production by 15. I MM pounds/year (from 164. 9 MM pounds to 180. 0 MM pounds) by making piping and instrument revisions to allow use oi bUU psi steam (reduced toJUU psi) for the Building 120 dryers. Typo of Savtngsi f xl Annual Raeurringi Est. Proj. Ufa 9 years. ( ~) Non-Recurring Hh ..................................... .................................................. ..................................... ........... ' ------------------------------- --X2- (Fill In this~box If coopleting project on tho OIP booktj use data submitted earlier on :orn 1708) (Fill In this box for all cooplatad projacts) ESTIMATED NET SAVINGS OutMf-Poeket Potential * FINAL CLAIM OF NET SAVINGS Out-Of-Pocket Potantlal ------- 4- iC ^ a ndj Total * Total ESTIMATED COST Naw Capital Transferred Invaataant Non-Capital (Expense) * * * ....-.........-- ACTUAL -COST Naw Capital Transfarrad Invaataant Non-Capital (Expansa) DISCUSSION AND SUPPORTING DATA (Give anough inforoation to dafina tha old way and tha naw way--tha chanoa which constltutas tha OIP. Glva cost and savings data and method of calculating savings in anough data!I to permit understanding. Attach extra sheet if necessary.) Period Cost Savings /i-Ai 2 MM l 164. 9 MM lbs _ $2.2 MM .) 180 MM lbs x 164. 9 MM lbs = $ 184, 500 Drying capacity had bottlenecked Suspension Vinyl resin production. The drying bottleneck was broken by changing the dryers from 200 psi steam to 300 psi steam. The productivity increase also has a Phase 2 OIP value of $ 619, 000. (See attachment). UCC 091074 SUBMITTED 8Y: R. L. Frantz Data 7/23/7 Form No. 223 (Call Ext. 526 for supply) June, 1971 PIP - PHASE 2 CALCULATION OF GROSS MARGIN FOR PRODUCTIVITY PROJECTS The following information is needed for calculation of gross margin: Data Source A. Increased sales (or production) resulting from project, Ibs./yr. 15. 1 MM lbs. B. Sales price, $/1b. 0.130 or Production Department Head or Production Manager Operations Team: use average sales price unless a specific other price Is more appropriate. Transfer price, $/lb. Production Department Head: use transfer price If no meaningful sales price exists.* C. Plant cost of product, $/lb. 0. 07! Production Department Head: use product standard cost, not a direct or incremental cost. D. Distribution cost, $/lb. 0. 018 Operations Team: use an average for the product unless a specific other cost is more appropriate. Calculation Method Initial Estimates (Initiation Notice) 1. Net Income from Sales (A above x B above) 2. Plant Cost (A x C) 3, Distribution Cost (A x D) 4. Gross Margin [line 1 - (lines 2+3)] Final Figures (Closing Notice) $ 1, 963, OOP $ 1, 072, 000 $ 272,000 1, 072, OOP - 1, 344, 000 $ 619, 000 *For productivity projects involving improvement of utility supplies: Utilities have no formal transfer prices at this time. However, the Energy Systems Operations Group can supply a calculated transfer price to use in these calculations. UCC 091075 JJtMUJ-" r r* >7^/ C01.IPIFTEP OBJECTIVE CLAIM--OIP PROJECT Hi*** _O_P_E__R_A_T_I_Q__M_S__I_M_P__R_O_V_E_M__E_N_T___P_R_O_G_R__A_M_ t--i r.tt)V,*i^_Jctoslng notice for project already on OtP books. l_xj After-the-fact new project, Sv*te<nSu"PenlorlBlog* A Operations 3yi>tR ho.0S4 ilUeUtr, ,1 Tm N*!____l0 Was Proj. Budgeted? LjYeS 0No Charge(B30 or Order No.) oip no. (If known) Ci. P. Ke'ster_____ Suggester's Dept. 084 -R. L. Frantz Routing--Operatins nd Auxiliary Systems (t) Dept. Heed R. L. Frantz___________ l/tyn Initials Date' Resoonsibl I ity R. L. Frantz RoutIng^fe intenance Dept. Systems (l) Area Ena Inter Initials Data (2) ----------------------------------------- (3) Asj't. Pit. Mgr. l^_Cowse (2) Dept. Head_______ .- /_ y/4 (3) Ass*t. Pit, Mgr. (4) Plant Controller Qtlin (4) Plant Controller * Plant Controller will send copy of approved notice to Production Manager, Statement of Project or Claim Increase Suspension Vinyl production by 15. 1 MM pounds/year (from 164.9 MM pounds to ISO. 0 MM pounds) by making piping and instrument revisions to allow use ot 600 psi steam (reduced to ^uu psi) or the Building 120 dryers. "" -------------------------------------------------------------------------------------------------- --- 01S.Ci.IS5! PN AMD SLlrPQRTING DATA (Give enough information to define the old way and the new wty--the change which constitutes tht OIP. Give cost end saving!, date and method of calculating saving* in enough detail to permit jnderstending. Attach extra sheet if necessary.) Period Cost Savings ( $2.2 MM \ 164. 9 MM lbs $2.2 MM L80 MM lbs x 164. 9 MM lbs = $ 184, 500 Drying capacity bad bottlenecked Suspension Vinyl resin production. The drying bottleneck v/a& broken by changing the dryers from 200 psi steam to 300 psi steam. The productivity increase also has a Phase 2 OIP value of $ 619, 00r>. (See attachment.:. UCC 091076 S'.'BMITTED 8Y: R. L. Frantz Odin '< ` `` """27nr*i"' Rev* v D/ ^ COMPLETED OBJECTIVE CLAIM--OIP PROJECT --------------------------------------------------- OPERATIONS IMPROVEMENT PROGRAM I, ft ck One no.o..BflW.c f8r Prj*ct `reedy on OIP books. 1x1 Aftr-tho-fact now project. Chock System^*pensionBldg* Operations Wes Proj System Mo.084 R~Pcir.gNrNo.120 Toon No.* 70 Budgeted7 Qve El No oCrhaOrgrdeo(9r30No*) OIP NO. (If known) 4-IXX R,,^*.t.rl^ G. P. ..Keister Suggostcrs Dept. 084 R. L. Frantz Routing--Operating ond Auxiliary Syatema ReoponoibiIIty R. L. Frantz Rout Ing--Mo Intononco Dopt. Syatema (I) Oopt. HoodR. L. Frantz (2) 10 ,r" (2) Oopt. Hood___ inltioko Bate (3) Aoo't. Pit. Mgr. B- B- .Cowser-------(4) Plont Control lor J- ^** Qu*n (3) Ass*t. Pit. Mgr., (4) Plant Controller * Plant Controller will send copy of approved notice to Production Mananor. Statement of Project or claim Increase Suspension Vinyl production by 15. I MM pounds /year (from 164. 9 MM pounds to 180. 0 MM pounds) by making piping and instrument revisions to allow use ot 6L)u psi steam (reduced to 3UU psi) for the Building 120 dryers. 1 --------------------------------- "" -- * Typo of Savingei I x I Annual Recurring; Et. Proj, Life 5 vaara. Non-Recurring ^ |/1 ) + Y iltM d- 7--- (Fill In thto box If complating project on the OIP books; use data submitted earlier on Form I7O8) (Fill In thie box for all completed projec ts) ESTIMATED NET SAVINGS Out-Of-Pocket Potential Total FINAL CLAIM OF NET SAVINGS Out-Of-4*ocket Potentiel Total t. i 184.500 184,500 ESTIMATED COST New Capital Transferred Investment Non-Capital (Expense) AfilUAL COST New Capital Transferred Investment Non-Capital (Expense) JT'siro DISCUSSION AND SUPPORTING DATA (Give enough information to define the old way and the new way--the change which constitutes the OIP. Give cost and savings data and method of calculating savings in enough detail to permit understanding. Attach extra sheet if necessary.) Period Cost Savings fXh. 2 MM - f80MMlt) * 164' 9 MM lb8 = * l84' 5-P I L64. 9 MM lbs Drying capacity had bottlenecked Suspension Vinyl resin production. The drying bottleneck was broken by changing the dryers from 200 psi steam to 300 psi steam. The productivity increase also has a Phase 2 OIP value of $ 619, 000. (See attachment). UCC 091077 SUDtiiTTED byt R. L. Frantz Date 7/23/73 Form No. 223 (Call Ext. 526 for supply) June, 1971 PIP - PHASE 2 CALCULATION OF GROSS MARGIN FOR PRODUCTIVITY PROJECTS The following information is needed for calculation of gross margin: Data Source A. Increased sales (or production) resulting from project, lbs./yr. 15. 1 MM Lbs. B. Sales price, $/lb. 0. L30 or Production Department Head or Production Manager Operations Team: use average sales price unless a specific other price is more appropriate. Transfer price, $/lb. Production Department Head: use transfer price If no meaningful sales price exists.* C. Plant cost of product, $/lb. n 07i Production Department Head: use product standard cost, not a direct or incremental cost. D. Distribution cost, $/lb. 0. 0L8 Operations Team: use an average for the product unless a specific other cost is more appropriate. Calculation Method Initial Estimates (Initiation Notice) 1. Net Income from Sales (A above x B above) 2. Plant Cost (A x C) 3. Distribution Cost (A x D) 4. Gross Margin [line 1 - (lines 2+3)] Final Figures (Closing Notice) $ 1, 963, OOP $ 1, 072,000 $ 272,000 I, 072, 000 - 1, 344, 0< $ 619, 000 'For productivity projects involving improvement of utility supplies: Utilities have no osfor prices at this time. However, the Energy Systems Operation; can supply a calculated transfer price to use in these calculations. UCC 091078 CT-I7LJ3-B-- COMPLETED OBJECTIVE CLAIM--0IP PROJECT Rev. 2/M,* * * _O_P_E_R__A_T_I_Q__M_S__I_M_P__R_O_V_E_M__E_N_T___P_RO_G_R_ AM |--I Closing notlee Tor project already on 01P books. |_xjAfter-the-fact new project* Sy*teS US pens ion Bldg. Operations Wes Pro j. System No. 084 Namey^yl r? Pc ;n kNo.IZO Teen. No.*-------VO___ Budgeted? LjYts E]No Chrg(*)30 or Order No.) oip no. toy(If known) C,. P. Keister___ Suggester's Dept. 084 R, L. Frantz (touting--Operating end Auxiliary Systems Arshin(l) Dept. Heed R. L* Frantz -----------Initials Date Responsibility R. L. Frantz t, I) Ares Eng In Rout Ing--Ms Intensnce Dept, Systems Initials Cate (2) -------------------------------------------------------------------------------------------------(2) Dept. Head (3) Ass't. Pit. Mgr. B. B. Cowset ' t f 1 * <-t ' . (1^ /J 1* / hi Ass't. Pit. Mgr.. (a) Plant Controller J- E. Quin (a) Plant Controller * Plant Controller will send copy of approved notice to Production Manager. Statement of Project or Claim Increase Suspension Vinyl production by 15. 1 MM pounds/year (from 164, 9 MM pounds to 180. 0 MM pounds) by making piping and instrument revisions to allow use ot bU(J psi steam (reduced to 3UU psi) f0r the Building 126 dryers. ---------------- ---~-- Type of Savings* j x I Annual Recurring; Est. Proj. Life 5 years. | | Non-Recurring (Fill in this box if complsting project on the OIP books; use data submitted earlier on Form 1708) (Fill In this box for all completed projects) ESTIMATED NET SAVINGS 0ut*4)f-Pocket Tote 1 t i * FINAL CLAIM OF NET SAVINGS t______ . io-( r nr\ 184,500 E9TMTEP g<?ST New Capital Transferred Investment Noncapital (Expense) i- _ * i ._ ftsmi gpsj. New Capital Transferred Investment Non-Capital (Expense) iT7500 DISCUSSION AND SUPPORTING DATA (Give enough information to define the old way and the new way--the change which constitutes the OIP. Give cost and savings data and method of calculating savings in snough detail to permit understanding. Attach extra sheet if necessary,) Period Cost Savings '$2.2 MM _ $2.2 MM ^ 164. 9 MM lbs 180 MM lbsj x 164. 9 MM lbs = $ 184, 500 Drying capacity had bottlenecked Suspension Vinyl resin production. The drying bottleneck was broken by changing the dryers from 200 psi steam to 300 psi steam. The productivity increase also has a Phase 2 OIP value of $ 619, 000. (See attachment). UCC 091079 SUBMITTED BY: R. L. Frantz Data t /2 '