Document 5e6aJR6R1ekEXwYBJzy3NLRz

FILE NAME Corning OC DATE 1969 May 9 DOC OC040 DOCUMENT DESCRIPTION Summary Report RE Temp res ite. ' a LAS LAS Ped Us TESG LAS oT LAS _~ OT ae I from Subject A. J. Pearson R. P. Shannon . MULTI COMPANY ~ Toledo Granville { i PROPRIETARY , | any parts of 00536 it CORRESPONDENCE CORRESPONDENCE CORRESPONDENCE any opener divulged Bhould COR ESPONDENCE without to others opener copied for permission divulged without permission Corporation Siberian Corporation Siberian Corning 00536 Date May 9 1969 C. Amos - Granville P. H. Scheuerle - Berlin C. A. Smucker - Granville Art I have attempted to the product called Multi prepare the brief summary report you requested Temp specifically cover three It is my understanding you wanted on to areas of interest to me projections prepared several Manufacturing 1 cost line 2 a brief review of years ago on the the entire Multi Temp product disadvantages problems in product itself including 3 thoughts on the processing and the like and its advantages temperature insulpartoidounctmaesrpkeectially as to how it relates to thmey toowtnalpehrisgohnal Multi Temp is completely free of today we would have the only asbestos If we were selling Multi Temp temperature on the market As you know asbestos it is rigid high temperature product free calcium silicate Kaylo our hope product and plans to have an asbestos- activities of Selikoff the adverse on the market in about a year The A products containing asbestos and public the reaction to the use of insulating Multi Temp in our product line presence of asbestos Kaylo and would without doubt all rightful contribute to OCF's regaining its rightful position of insulation market Once leadership in the high temperature expect it to have we regain a positive this position of leadership we can such as pipe roofing effect on sales of related glass fiber IS beard duct insulation and products the like the relatively When MultiTemp was dropped several was the refusal on the part of years ago two reasons were given one lines of high temperature our distributor to inventory and handle two insulations for the same low gross margins being achieved market the second was as well as projected for ) Recent discussions with Marketing indicate Multi Temp was low gross margins A the real reason for dropping by Justin Boeker's group back in feasibility report prepared and issued 21 for Multi Temp pipe This 1965 projected a gross margin level of of 33 for Multi Temp block same report projected a It gross rargin level of 33 for Multi Temp block is should be noted a projected gross margin expect to achieve on Kaylo actually higher block than the gross margins we during the next several year period continued ; 367 367 PLAINTIFF'S EXHIBIT OCF A. J. Pearson J. . May 9 1969 00533 zs Tenp . Page 2 QN I want to caution you in drawing too many conclusions from Boeker's 1965 cost projection Conclusions reached in 1965 are no longer valid since many of the process and market parameters have also changed When Boeker prepared the 1965 cost projection for Pfiefer apparently everyone was thinking big They were projecting a multimillion dollar market for Multi Temp and a similar size market for R rated acoustical products They envisioned a multi saturator multi oven multi molding press for Multi Temp pipe operation requiring an investment of substantially more than a million dollars As a further complication in interpreting data from this cost projection was the fact the facility was designed to process 2 rated tile 2 rated ceiling board Multi Temp pipe Multi Temp Block and Multi Temp fittings if economical all on the same facility It is my understanding you are considering resuming the production of Multi Temp block and wanted my thoughts on the subject Although I do not have cost data to back up my position I am convinced we could produce all of the Multi Temp block Marketing could sell during the next several years and we could do it in on facility similar in size to the R facility at Newark Furthermore I believe we can produce Multi Temp block with a gross margin level over 30 level we will have to come up with a new step process not yet invented The 2 facility at Newark was torn down recently and most of the mixing pumping suction equipment transferred to other areas for use in other operations ver two of the more expensive process items namely the R oven and ware ~-. 15 remain and could serve as the nucleus for rebuilding the operation at minimal cost At this point I would like to get in my two cents worth If the decision is rade to again produce and market Multi Temp block and pipe we have no choice but to locate the facility at Newark where the pipe colding presses are located However if production is to be limited to Multi Temp block I would recommend the facility be moved out of Newark There is nothing personal in this recommendation I just believe we would have a more efficient and more profitable operation if located elsewhere My choice for facility location would be Berlin I have a mumber of reasons for this recommendation and would like to elaborate on these in greater detail in the following paragraphs The Multi Temp saturating facility was considered as one of the dirtiest operations by the Newark Plant hourly employees It was dusty and the employees usually ended up covered with wet clay slurry on their clothes Most of the newly hired help at the Newark Plant were assigned to this area Our problem was they transferred out to cleaner Jobs faster than we could train them I am not kidding when I say you would see almost all new faces each week The R facility was operated not only with minimum supervision but also with unskilled untrained and quite often undesirable help All of these factors combined to lower product quality levels and job efficiencies A further complication was our inability = to control labor costs This was due to our inability to transfer the workers to other jobs during the long drying cycles A five crew could saturate in 2-3 _'s sufficient material to fill up the drying oven The operation was then shut 1 for 3-8-1 hours depending on thickness of the ware being processed while 2 ware was being dried For Union reasons these men could not be temporarily a eet of