Document Dddk4vER2XmzKDyNwG9xMRvJB
,anto
iCt
"ONI Sauget, 111.
June 27, 1968
cc, Messrs. J. R. McClain
J. W. Mo Hoy'
Start-up Expense Budget for
R. D. Williams
Aroclor Expansion Project (CEA l800)
R. S. Yates
R. M. Kountz
Mr. W.A. Kuhn (2) General Offices
Attached for your approval is the Start-up Expense Budget for the Aroclor Expansion Project including estimates of Preparation Expense and Operation Expense. These estimates have been prepared To conform to policy given fn~Controller1s Bulletin 12-06 and Organic Division Bulletin No. OA 5-1.
The totals for Preparation Expense and Operation Expense are summarized below.
Total Start-up Expense-$115,000
The total start-up Expense of $115,000 is approximately 7i% of the estimated capital provided on CEA 3.800 for this project. The basis for the timing of the start-up is Revision No. 5 of the Master Project Schedule dated 5/20/68.
The attached pages give a detailed break-down of expense esti mates by type and an estimate basis for major expense items.
Service Account Number 918.55 will be used to collect Preparation Expense charges. These charges will be closed out to the division start-up account (715.OO) monthly.
Starting in July, a variance report comparing actual start-up expenses with budget will be sent to you monthly.
Budget
Mfg. Representative
c c
ghw
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Preparation Expense Budget Aroclor Expansion (CEA 1600)
Job No. 916.55
-2-
Budget Item
Factory Expense
Totals
Chemicals (505) Utilities
7,000 5,150
Mfg. Wages (570)
5,790 .
Mfg. OH
(578)
810
Salaries (575) 16,450
Salaries OH (578) 2,950
Factory Supplies
(590) ' 8,000
Laboratory (610)
3,300
Clothing & Laundry (614) 2,900
Safety Equipment
TSD
(63-3) (621V
400 3,000
Kech.Exoens e(6g4) 20,000
Sub-Total -
75,750
3rd Qtr. 1967
0 0 0 0 600 100
0 0
0
0 0 0
4th Qtr. 1967
0 0 0 0 900 150
0 0
0
0 0 0
1st Qtr. 1968
0 0 0 0 1500 250
0 0
0
0 500 0
Phase I 2nd
June
Qtr.
1968
1968
0 1000
100
15 1200
200
0 1000
100
15 2200
350
00 00
00
0 500
0
0 500
0
Phase I July 1968
0 1000
965 140 1200 200
1000 1000
100
100 1000 1000
Phase I Phase II 3rd Phase IX 4th
Aug.
Sept.
Qtr. Oct.
Qtr.
1968
1968
1968 1968
1968
0 0 0 0 1650 300
0 0 0 0 4200 650
0 1000
965 140
7050 1150
7000 3150
4725
655 4200
650
7000
3150 4725
655 5200
300
2000' 1000
3000 1300
6000 3300
2000 0
2000 0
0
0
100 2800
2800
0 0 1000
100 1000 8000
200
200
2000. 0
10000 10000
200 0 10000
Vendor Fees (715]1 5,000
0
0
0
Meetings
(798 ) 1,000
0
0
0
Office Supplies (($64} 250
0
0
0
Sub-Total -
6,250
TOTAL -
82,000
0 0 0
0
0
1000
1000
2000 3000
3000
00
0
500
500 500
500
0 100 0 100 200 50 50
teioteo
TOWOLDMONOQ45576
Estimated Preparation Expense for
Aroclor Expansion (CEA lBOO) Job No. 916.55
-3-
1. Chemicals
$7,000
Phase I
Since only storage tanks and associated equipment
are involved, it is anticipated no start-up cost for
chemicals will be incurred.
$0
Phase II
Process simulation on new process equipment using
Aroclor 1242 -10,0000. @ $0.70/gal.
$7,000
.2 Utilities
$5,150
" '
Steam @ 15% Std. Electricity @ 10% Std. -
6/68
$w $100 $1000
7/68 $00 $100 $1000
Phase II Steam @ 40% Std. -
. 10/68 fe'OO
Electricity @ 25% -
250
Purchased Water @ 50% Std. $400
3155
3- Mfg. Wages Phase I
No.
"R'ebaTrman
'2
Second Operator 5
Std. Operator
2
cSwingman
1
Hate
3.705 3-540
3.405 3-855
Vac. & Hoi. @ 12.824% - .
Phase II Premium Operator Still Operator Second Operator Swingman Swingman
4 4 4 1 1
3.660 3.620 3-540
3.855 3.620
Vac. & Hoi. @ 12.824%
Hours 24~
180 48 12
Cost --go
635 165
45 "935
130 $1665
240
880
480 (1) 1735 48 170
60 230 320 (1) 1160
^175 550
$4725
$5,790
p) New classifications. Will receive training on straight time. All others are regular department personnel and will be trained on overtime.
4. Mfg. Wages O.H. (13-993%) '
'
$610
02 3013^
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5. Salaries (Training, Start-up Planning, Preparation
for Start-up) Phase I
a. Mfg. Representative $300/mo. - 8/67 thru 12/67, $500/mo.
. 1/68 thru 8/68'-
b. Production Supervisor $250/mo. 6/68 thru 8/68
c. Production Foreman $450/mo. 6/68 thru 7/68
-4-
$16/150
$5,500 $750 $900
Phase II
.
" a. Mfg. Representative
$500/ino. 9/68 thru 10/68
b. Start-up Foreman
$900/mo. 8/68 thru 10/68
c. Production Supervisor $250/mo. 9/68 thru 10/68
d. Shift Supervision 3 men $850/mo. 9/68 thru 10/68
.6 Salaries OH (17-75^)
7. Factory Supplies ' aT" Housekeeping Equipment
bi Safety Signs
cl Equipment Tags
dj Safety Equipment
el Laboratory Equipment
.
f) Miscellaneous Start-up Supplies
.
.8 Laboratory a) Develop routine methods for electrical property measurement based on Organic Research Work.
b) Analyst Training
9. Clothing & Laundry (5% of Wages) 10. Safety Equipment
11. Technjcal Services a) Training Assistance bl Materials Engineer
c) IFO Review
$7,150
$1,000 $2,700
$500 $5,_100_ r$9,T00 $2,950 $8,000
$3,300
$2,900 $400
$3,000
0P30139
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12. Mechanical Expense
'Phase X - if 2,000
$l5Kase--II - $18,000
20,055
5- -
$20,000
Includes: a) Equipment, Instrument and Electrical checkout prior
to start-up (beyond nominal service provided by Engineering).
b) Alterations to equipment prior to and during process simulation (water batching).
c) Maintenance coverage during start-up.
13 Vendor Fees
$5,000
1*1. Meetings
$1,000
15. Office Supplies ~Tf50/mo. - 6/8 thru 10/68
$250
Total
$82,000
0?301M>
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Operation Expense Budget Aroclor Expansion
(Over-and-Above Standard)
Budget Items
Util'* ties Salaries Salaries OH Factory Supplies . Laboratory Mechanical Expense
Totals
3,000 5,100 .
900 2,000 2,000 20,000
Phase X Phase I 3rd Qtr. Aug.'68 Sept.'68 >68
1000 0 0 0 0 0
1000 0 0 0 0
2000
2000 0 0 0 0
2000
Phase I Oct.'68
1000 0 0 0 0 0
Phase II Nov.168
0 2,550
450 1,000 1,000 9,000
Phase II Dec. '68
0 2,550
450 1,000 1,000 9,000
4th Qtr.
1968
0 5,100
900 2,000 2,000 18,000
TOTAL -
33,000
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-7-
Estimated Operation Expense for
Aroclor Expansion (CF.A l800) (Over-and-Above Standard)
Following is the basis for estimating Operation Expense for the Aroclor Expansion Project. These costs are for over and above standard costs for chemical operation. All other costs were assumed at standard. '
Utilities .'
(Tank farm on line prior to Mfg. Plant) g0 ^
Steam @ 15% Std. - 900 Elec. @ 10% Std. - 100
ToWno. 8/68, 9/68,
10/68
$3,000
Salaries (Shift supervision on start-up) Phase II Shift Supervision 3 men @ $850/mo. 11/68 & 15/68
$5,100
Salaries OH (17.750%)
$900
Factory Supplies $T07)(57mo. over-and-above standard 11/68 & 12/68
$2,000
Laboratory l'1000/mo. over-and-above standard 11/68 & 12/68
Mechanical Expense Phase I -
, Phase 11 -
$2,000 !ji18,000 fSo.OScJ
$2,000 $20,000
Includes: '"
All mechanical expense required for minor modifications and correction of facilities to obtain smooth and trouble free operation at design rate, quality and cost.
TOTAL -
|33iPOO
0?3W
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