Document DvNKqarKxLJXe5wQ1vnV7OO8o

November 4, ] 969 TO: FROM: W. J. Sheehan G. M. Brown SUBJECT: WET MACHINE OPERATION { In reviewing the economics of continuing the operation of the wet machine, one of the important factors was the 25% variance addition to our standard costs. The 25% addition was suppose to cover the off gauge material pro duced for which we had no usage. To determine the validity of this cost we reviewed a four week run and compared sheets produced to our actual re quirements. In addition we recorded all sheets scrapped for all reasons including unusable gauges. We obtained the following results. #70 White Calandared Asbestos 33046 Sheets produced 1955 Sheets scrapped for all 5.5% Scrap reasons #70 White Uncalandared Asbestos 19188 Sheets produced 1612 Sheets scrapped,for all 9% Scrap reasons As you can see, the percentage of sheets scrapped is considerable less than 25%. Even assuming that we might build inventory, over a period of time, in some gauges in excess of our needs which we would have to scrap. I don't feel we would exceed 10% of our overall production. In order to verify the above figures we will investigate the current wet machine run on the same basis. In addition to the above investigation on quality, considerable effort was expended to reduce clean up and idle time on the wet machine. j> J i ( DANA-292 VPD-91-0000808