Document 6BddoyY3EQqN3Jr9xxJ1jpYLo

/- INTRA-COMPANY CORRESPONDSNC5 d ad _3 i i--j R, L. Stafford - Touoo / ot H*r 2*i, 1965 h*> Michael Hardwick - Berlin *** KAYLO - LONG RANGE PLANNING ' PERSONNEL _ . M. 0* Burch - Toledo B. Boro - Toledo AFTER REVIEWING THE KEY PLANT PERSONNEL# THE f R BACKGROUNDS, QUALIFICATIONS, LOMG RANGE POTENTIAL AND PARTICULARLY THE , REPLACEMENT PEOPLE FOR THESE KEY PERSONNEL, l CAN FIND NO SETTER EXPRESSION TO EXPLAIN MY APPRAISAL THAN ^A RjJ.. TmE RESULTS OF THIS APPRAISAL Of PLANT OCPTH AIJP St*EM<3,YH TO SUSTAIN THE LONG PULL Or FUTURE GROWTH, IMPROVEMENTS IN PROMTS, SALES AND PRODUCTIVITY ADDED TO AND MAGNIFIED THE IMPRESSION .WHICH HAS SEEN SLOWLY FORMULA TEO IN MY APPRAISAL OF OUR CORPORATE AND DIVISION SITUATION AS CONCERNS KAYLO, ITS SHORT AND LONG RANGE FUTURE. YOU WILL FIND ALSO ATTACHED MY APPRAISAL OF THE CAPASlL(TIES Of OUR STAFf AREAS TO ASSIST KAYLO \H STRENGTHENING ITS POSITION, IMPLEMENTING ITS GROWTH AND CONTINUING A TREND OF INCREASING PROFIT LEVELS. r-W How A SITUATION WHEREIN A PROFIT LEADER AND ENTIRE FACILITY CAPABLE OF $8 MILLION ANNUAL SALES COULD SC SO ISOLATED AND UKATTCHOCO IN Y KG OVERALL CORPORATE PLAN IS 6EYDHD UNDERSTAND I NO AND BASICALLY BESIDE THE POINT. JT DOES EXIST IN THIS STATE AT THIS TIME. THE FOLLOWING ARE SUBMITTED TO SUBSTANTIATE THIS BOLD STATEMENT: 1) flELD SALES HAVE RCQUCSTEO AN IMPROVED PROCESS KAYLO MPC PRODUCT LINE T OR IMPROVED PRODUCT QUALITY FOR THE PAST g VC^RS, Activity* - None. Results - None. 2) A PATENT'HAS BEEN APPROVED ON AN OWENS CORNING flBERGLAS PROCESS DEVELOPED IN 1<&1 FOR THE PRESSURE FORMING Of KAYLO MPC '. WHICH HAS POTENTIAL FOR YIELDING THE DESIRED END PRODUCT. M Action ~ None until March 1965 when Berlin Plant built their own * Prototype, although requested. General Engineering has showed : \\ NO INTEREST DUE TO CURRENT WORK LOAD |n OTHER AREAS. * JL2 3) Expansion requirements to meet sales increases were forecasted in 1963, 196*4, *965.- action - None. Results - 10-15# ikcrcasc oue only to plant ef.fort. 1965k) A $105,000 .901 FOR BUILDING REVISIONS APPROVED IN . REQUESTS FOR REVIEW Of OVERALL LONG RANGE PLANT LAYOUT IN LIEU OF EXPANSIONS - WV-1056 * * * PAGF 2 KAYLO - LONG RANGE PLANING PERSONNEL 5) BATCH, PACKAGING AND DIRECT MATERIALS COSTS INCREASING AT 2- 2^ per annum. This comprises **3# or total hanufacturing costs* Corporate programs in progress - None* Requests tor HELP HAVE SEEM MAOE -ATTENTION - NONE .6) Labor costs as per'ccnt total costs 35-37#, mill increase WITH TIME AND .NEW CONTRACTS* SOLUTION - MECHANIZATION, REQUESTS TOR PLANT LAYOUT STUDY, MECHANIZATION EQUIPMENT, OTHER LABOR SAVING programs - Action-Mi nor in Methods Engineer!mg; Nome-General Engineering or Process development* 7) Product Development Programs - None 8} process Development programs - None outside plant ' 9) Batch R & D pbograhs - None outside plant * This story could continue for many pages* however* in the interest or corporate profits and future growth, we must fACE THIS area head ON AND THIS MEMO IS 1NTCHDC0 TO FORCE THE FACTS OUT ON THE TABLE IN HOPES THAT CONSTRUCTIVE ACTION WILL SE OBTAINED* Finally I submit 'To you that the Berlin operation and Krtlo as a PRODUCT LINE HAS RISEN FROM AN 11# GROSS MARGIN TO A 25# PLUS CROSS MARGIN OVER THE PAST THREE YEARS* ThiS WAS ACCOMPLISHED AT 0# J 08 EFFICIENCY LEVEL WITH OLD EQUIPMENT AND PLANT, OUTDATED * PROCESSING, 35# LABOR AND MATERIAL COSTS. I AH REMINDED OF - AN IMPRESSION \ HAD UPON MY TRANSFER FROM THE TEXTILE PRODUCTS AREA TO 1963General Products ih in preparation for the Vaxahachie start-up. * * AT THAT TIME THE GENERAL CONSENSUS WAS THAT A WOOL MACHINE WAS A RAMBLING, TOUCH AND TUMBLE OPERATION WHICH COULD BE PROFITABLE UNDER THE WIDEST VARIANCE Of OPERATIONS CONTROL* THIS tS IN FACT * 'ABSOLUTELY RIDICULOUS AND FORTUNATELY YOU HAVE SPEARHEADED A DRIVE FOR IMPROVED CONTROL OF WOOL FORMING THAT WILL RESULT IN MAJOR GAINS (N PROFITABILITY. t SUBMIT THAT ANY MANUfACTOR I NO OPERATION MUST * HAVE THE FOLLOWING INGREDIENTS IN '.ORDER TO BE PROFITABLE OVER THE LONG HAUL ANQ KAYLO IS NO DIFFERENT: A 1) orTechnical knowledge in basics Product Formation and Structure* . 2) Progressive improvement programs in both short range processing EQUIPMENT AND MATERIALS AND LONG RANGE RESEARCH AMO DEVELOPMENT IM PROCESS, MATERIALS AND TECHNOLOGY* 3} Product development - New products Jr U)- Engineerjmg advances in all phases or manufacture* > -M* Pace 3 KAYLO - LONG RANGE PLANNING PERSONNEL . 3) Mechanization innovations and methods improvements. 6) Last, out not least, to utilize the above - leadership ih MANUFACTURING WITH TECHNICAL UNO ERSTA NO I NO OF THE PROCESS* , A PLANT STAFF MUST 8E TECHNICALLY QUALIFIED TO OPERATE THE FACILITY ON THE SHORT RANGE VITH DEPTH IN TRAINING FOR EXPANSION AND REPLACEMENT* KAYLC NAS A FUTURE! With HELP OF THE QUALITY AND AGGRESS IV CNESS CURRENTLY GIVEN WOOL AND TEXTILE OPERATIONS, KAYLO COULD BECOME A TOP PROFIT OPERATION. KAYLO NEEOS SUPPORT AND ITS SHARE r ATTENTION FOR THE FUTURE. YOU ARE CHALLANGCO AS ARC VC AT THE PLANT TO BEGIN NOV GUliOIKG THE FOUNDATION REQUIRED FOR FUTURE GROWTH AND PROFITS* . ' . Kaylo is a.part of Ovens'Corning Fiserglas* Corporation and oamnco proud :to be one of the company's profit lcaocrs! We intend to stay there! We ncco your kelp* HOB i 1 ^ .T.-A . '* kj/_ 01 041 0918