Document DvjwJxQrRLJkJ50JXOqo3j0yM

'^haceJ .INSTRUCTION PRODUCTS DIVISION TO: T. L. Lyall FRCH: W. R. Wright cc: See Distribution List 755142 DATE: Novenfcer 20, 1973 SUBJECT: Monthly Report October, 1971 I. Monthly/Year-To-Date Performance A. Volume 1. Vermiculite - In October vemiculite production totalled 1,477,800 bags which is 332,100 bags or (26.71) over the monthly budget and 149,100 bags (10.SI) over October, 1972. Production YTD totals 12,509,200 bags which is 52,200 bags over budget. % 2. Perlite - Total perlite production in October totalled 59,200 bags which is 27,200 bags (31.51) below the monthly budget. Production YTD totals 1,705,200 bags which is 159,800 bags (18.58) below the budget. 3. Monokote - Monokote production for the month of October totalled 348,000 bags which is 14,800 bags (4.48) above the * monthly budget and 29,000 bags (9.18) ahead of October, 1972. YTD Monokote production totals 3,273,600 bags which is 58,400 bags (1.88) below the 1973 budget. Summarized production statistics are shown in Table I, attached. B. Operating Costs - Department 294 was favorable for October by $700. The only account with a significant unfavorable variance is Personnel Procurement and Relocation which will continue unfavorable for the rest of the year as discussed last month. Expense variance summary is shown in Table II, attached. C. Manufacturing Variances - Total manufacturing expense variance for ail expanding plants in October was favorable by $14,600. A summary of these cost variances is shown in Table III, attached, with conanents . as follows: - 1. Variance by Account I G-inax IPLAINTIFF'S EXHIBIT a. Materials - $16,600 unfavorable - All of this variance is attributed to ore quality deterioration. Assayed yield variance was unfavorable by $29,900. Operating efficiency variance was favorable by $11,000. This gives a net unfavorable ore variance of $19,900 which can be interpreted as ore quality being this much worse than first nine months of 1972 on which the standards were based. T. L. lyall -2- Nbveraber 20, 1973 755143 b. Labor - <20,500 favorable - Last month there was a $25,000 accrual error made in the labor account which is credited __ this month. Therefore, the actual labor variance is . unfavorable by about $4,500. Labor rate would account for at least $8,000 in addition to inefficiencies resulting from ore shortages and ore quality. c. Variable Costs - $7,200 favorable - This has been favorable for two months. Hopefully the result of a curtailed spending program for last four months of 1973. # 2. Variance by Plant __ _ a. Pompano - $3,795 unfavorable - Fuel used in production accounts for $2,811 of this variance. This is caused by two months billing. However, this account is underbudgeted and is $6,497 unfavorable YTD. b.; Muirklrk - $11.129 unfavorable - $1,576 is assayed yield and $4,995 is fixed cost variances both of which are uncontrollable. Variable costs were unfavorable by $3,170 partly because last month there was no billing on fuel, outside services and-I utilities. The net effects of last month's favorable variance of $2,305 and this month's unfavorable variance of $3,170 is $865 unfavorable all of which can be attributed to below budgeted production. Progress has been made in reducing the labor variance which was $614 this month after correcting for last month's accrual error. XI. Manufacturing All plants are handicapped in general by the ore shortage and car shortage problem. This situation is all too familiar to all who read this report so there is little point in discussing it. It will have a definite effect upon labor and other plant operating costs, the magnitude of which is difficult to predict. III. OSHA and Pollution Problems Spokane On Monday, .Vovember 6th, a WISHA compliance officer made an inspection of the plant in response to a complaint filed by two discharged ~ esployees. At time of the inspection we were expanding *4 ore, unloading, ore and mixing Accoustical Plaster of which asbestos is an ingredient. This in itself is not a violation; however, dust samples were taken and without doubt they will exceed the allowable limit from each of the above-mentioned sources. Citations for this will be coming after they get laboratory results of the dust samples. In addition, we will be' T. L- Lyall -3- November 20, 1373 75514 Cited for: (1) No warning labels on finished .product. (2) No warning labels on waste disposal bags. . (3) Dry sweeping around the area of the mixer; . We did not stop production of Accoustical Plaster at the sane tine we stopped producing MC-3 because the law pertaining to NIC-3 application did not apply. Ms planned to phase it out gradually and obviously waited too long. We have now stopped making product. The only other active product we have containing asbestos is part of the Texture Products line. We expect to have agreement to eliminate this formulation within a couple of days. The same discharged esployees who called br an OSKA. inspection also filed a complaint with the NLRB claiming they were discharged for union activity. We had no knowledge of any such activity and are responding to the charge in the normal manner. Outcome won't be known for a few weeks. Both the above situations may accelerate our plans for shutting down this operation. -- WRWrdlc Attachments i PLANT i Anffeles wark okane rtland oenix nta Ana ttle Rock w Orleans shville amey oksonville npa ttpano irbom fdsport ithampton h Point Lrkirk i Castle meapolis iver tha waekee Louis der. cago R. . 1973 . 1972 . 1971 * il . \. OIV'UU 14 V.U. CONSTRUCTION PRODUCTS DIVISION EXPANDING PLANT OPERATIONS _______ * PRODUCTION Table I OctoEer-- BAGS (000) 75514c Total does not include MX* #0 #1 12 #3 #4 #48S S. A. Perlite M-JC 2.8 8.7 45.5 - 13.5 44.6 5.7 29.6 17.6 41*. 1 9.2 6.0 4.5 . 13.4 14.7 2.1 1.2 1.8 - 11.0 26.0 16.8 . 20.5 10.0 7.5 35.9 31.2 28.4 1.1 17.9 0.8 11.5 12.8 38.2 0.6 10.9 12.3 2.7 16.8 0.9 11.9 155.8 17.8 7.2 > 41.3 3.7 5.6 * 29.8 3.9 23.7 . 9.6 23.3 9.6 12.0 3.7 6.5 ' 23.4 - *. 6.0 12.6 24.4 3S.7 33.0 23.2 7.3 - - 29.9 . 27.4 20.8 23.9 / 32.S 1.3 25.5 12.9 5.0 1.4 13.1 9.7 2.3 7.0 1.3 3.0 15.3 14.5 7.5 8.4 62.1 1.1 27.1 17.6 25.9 15.3 28.5 13.4 28. S 12.1 9.9 20.0 29.5 24.5 18.7 2.8 22.2 8.5 18.0 3.3 0.3 32.1 23.8 0.6 29.5' 1 18.1 f i # 1.4 .. 1.3 5.3 16.1 6.3 16.6 24.5 7.6 8.3 5.2 *L - C 1 * 13.2 '% 7.5 23.9 20.7 7 9 7 3 32S.3 251.3 212.1 551.7 149.4 560.2 504.6 386.1 17.8 76.8 232.6 10S.S SOO.O 377.3 . 14.8 2.0 59.3 348.0 16 6.4 88.9 319.0 is: 6.1 69.7 271.8 13( ; * - --- ---------- ---- * U i ViOJLUfy EXPANDING PLANT OPERATIONS NRH:dlc 9/12/73