Document EvLk0842MbL9JLmqQKRRyNNKL

November 4, ] 969 TO: FROM: W. J. Sheehan G . M. B rowrt 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. DANA-292 Page 2 In the past, on a two shift basis approximately 46 man hours a week was used on clean up. Twenty-six man hours on the "C" shift Friday for machine clean up for the week-end and approximately 20 man hours were lost at the start of the "B" shift due to clogged sprays. We've taken some unorthodox steps in this area and have reduced the man hours lost to 8 per week or an overall reduction of 38 man hours. Based on an average cost of 3.24 per man hour this will reflect a decrease in expense of $123.00 per week or approximately $3000.00 per" year. I'd like to get these savings reflected in our standard costs and will talk to J. Mayer to see if it is possible. Based on the above there is no major savings to be had by purchasing this material and I recommend we continue to produce our own #70 board. ds VPD-91-0000809