Document 3Q3Lq6OzyzBzrvvNwoRow7O5O

Request For Capital _____ Expenditures/Retirements DIVISION OR COMPANY Organic Chemicals Chicago Plant Dept. J.O. CONTROL POINT 097 JOB TITLE Purchase and install lead carbonate pump REPORTING CLASSIFICATION DATE APPROVED JOB ORDER NO. Cl SUMMARY OF AMOUNTS DESCRIPTION LOCAL CURRENCY e s t ima t e d p r o j e c t c o s t DISMANTLEMENT EXPENSE -500- TRANSFER EQUIPMENT GROSS AMOUNT FOR APPROVAL T53S5------ 1 LESS TRANSFER EQUIPMENT LESS SALVAGE OR TRADE-IN ALLOWANCE NET CASH REQUIRED (cor - 3027) -$3356------ j RETIREMENT DATA COST DISMANTLEMENT LESS SALVAGE AMOUNT 1.600 500 TOTAL - CHARGE RESERVE 2.100 DESCRIPTION AND REASONS REQUIRED ECONOMICS as called for in General Procedure Memo#3 Attachment C* (Attach cal culatiOns) ECONOMICS PERIOD NET SALES NAT (p r o f it /s a v in g s ) TOTAL INVESTMENT ,% ROI (o n t o t a l in v e s t .) INTERNAL RATE 0 F RETURN PAYOUT OF NEW FIXED CAPITAL REV.# 1 2 3 4 5 6 7 REVISION DETAIL (c r o s s a mo u n t s ) DATE AMOUNT CUM. AUTHORIZATION Funds of -------------------------- ------------------------------------ -------------- --$5356 are requested to purchase and install an air operated lead carbonate pump. SUMMARY OF ESTIMATED COST - Details on GOF-3027 ITEM NO. DESCRIPTION See attached ESTIMATE NO. 7/ /79STARTING DATE MATERIAL LABOR COMPLETION DATE 10/30/79 ENGINEERING TOTAL 4156 . 1000 200 5356 NET CASH REQUIRED 4l p6 1000 200. 5356 ITEM NO. ACCOUNTING TREATMENT Dr. $4,440 P. P. & E. (132) Cr. $1,600 P.P. & E. (232) Dr. $1,600 Res. for Depr. (232) Dr. $500 Res. for Depr. (432) Dr. $219 Expense as Incurred Dr. $197 Inventory APPROVALS fjDEPR.RATE ,, N AMS PRO JECrt^S PONSuR 7 1/4% ---- --------------- ---- u iS / > DATE w/?r ACCOUNTINC TREATMENT / ECONOMICS APPROVED BY DIV. CONTROLLER (CHECK BOX(ES)J POST AUDIT PERIOD DISTRIBUTION P.OST AUDIT DUE DATE DIVISION PRESI DEN T/DI RECTOR .......... ............ CORPORATE OFFI CER *027 R*EV. 7/62^'TM** 7/62 DETAIL SHEET * ' SHEET NO. JOB ORDER NO. COMPANY American Cyanamid Company ITEM OR CODE NO. DESCRIPTION 5/9/79 LOCATION Chicago, 111. EQUIPMENT OR MATERIALS ENG. MECH. SVC. Air operated pump 3190 200 2 Piping 3 Spare parts k Dismantlement 5 Shipping charges 6 Illinois state and use tax 500 500 197 500 50 219 TOTAL 3390 1000 197 500 50 219 4156 1000 200 $5356 Dismantlements Carbonate Pump Acq. Date Acq. Cost Disposition 6/71 1,600 Scrap CYWI 24-0006342 cr c y a ^a mj i ? DESCRIPTION AND REASONS REQUIRED A. Proposed Work and Cost Funds of---------------------------------------------------- -------.................... ...... ...........$5356 are requested to purchase and Install an air operated lead carbonate pump. B. Present Situation Basic lead carbonate is made in two carbonating tanks and pumped into a holding tank above the c-rk m dryer. It is then dried, ground ana further processed as required. The pumping operation to the holding tank above the drum dryer is accomplished by the use of a steam pump manufactured in June, 1966. This steam pump wfl1 require $1110 In parts and approximately $1500 in labor to repair for a total outlay .of $2618. Due to the worn parts, the pump leaks carbonate sierry on the floor and into the sewer system, adding to the plants effluent problem. This pump is at the end of its useful life, and the plant has no other pump which could be us2 ! as a replacement in case of pump failure. C. Justification The plant cannot manufacture basic lead carbonate or make carbonate based blends without a carbonate slurry pump. This pump is used to transfer the slurry from the carbonator to the dryer. Sales for 1978 for basic lead carbonate stabilizers were 2,500 k pounds at $1,174 k with a profit of $303 k. In addition, carbonate blend sales were 1,311 k pounds at $518.8 k with a profit of $175.4 k. The existing steam pump can only be operated on the day shift, Monday through Friday, since it requires the use of high pressure steam during the day shift to operate. The plant only operates on high pressure steam during the day shift, Monday through Friday, since a stationary engineer must be present when the boilers are fired on high pressure. Only the services supervisor has a stationary engineer's license. The replacement diaphram pump will operate on readily available plant air. A trial pump, the same as will be purchased, was used to pump the carbonate slurry for over a month without a breakdown or problem of any kind. CYWI 24-0006343 \ D. COMHERCi AL FACTORS - II n' ' I. > -- I I - - - This rder sapporta a plant badges as follows: First five (5) months of 1979 Sales - Pounds Sales-Pol 1ars Profit on Sales 4,086,000 $2,578,000 788,000 (30.6%) Budget for 1979 Sales - Pounds Sales-Oollars Profit on Sales 8,650,000 $4,512,000 1,548,000 (34%) E. DETAILS OF PROPOSAL The plant .v/T11. purchase one Wilden Model m-15-S air operated double diaphragm pump, with spare parts and necessary three inch piping and fittings to install. Present steam pump wi11 be scraped. F. PRODUCT 1 ON FACTORS This proposal will not alter product quality or production rates. 6^ CONTINGENT FUTURE COMMITMENTS This proposal will not require additional funds to complete. H. ALTERNATIVES CONSIDERED Repair the present steam pump. This was rejected because of the high cost of parts, labor, and limited useful life. The new pump will be cheaper to maintenance. I. RISKS No operating risks are involved. J. CONCISE SUMMARY This is a replacement of a physical1y exhausted pump with a better pump. CYWI 24-0006344