Document GQGoG3BnanBKVnmExNEbYnjY

Marketing Product Development Monthly Report: July, 1976 by R. Lynham ingot Casting Products - Headings Systems ($000) JULY Y .T.DJ Actual Sales Budgeted Sales 1,294 1,454 11,042 11,095 * Market Planning: An analysis of the B.E.U., and B.E.D. hot topping and topping compound markets was undertaken in July to determine the reason why our growth in headings products has been stagnant for four years. It was discovered that the market share for B.E.D. as well as 5.E.U. hot tops was only 30%, and that there is considerable imbalance in the distribution of business across district lines, ranging from 2% to 60% for B.E.D. Specialty Steel's overall market share was confirmed at over 40%. For the time being, the hypothesis is assumed that a disproportionate effort has been applied toward compensating for problems in manufacturing B.E.U. tops, detracting from the effort to simply maintain the leading share of the B.E.D. business. A plan was adopted to concentrate on solving these near term manufacturing problems by concentrating T. Bernardi's effort in that direction. At the same time, R. Lynham and H. Shephard are to work toward development of the next generation of hot-topping concepts.^Jhe latter assignment is now under scrutiny to determine whether as much progress could be made in acquiring market share by improving existing product quality and sales expertise. * Asbestos-Free Conversion: All plants are now asbestos-free, and the number of complaints concerning asbestos has dwindled to zero. Steady progress is being made toward development of PROFLEX recipes that are relatively problemfree during production. Project 2000: A. Anderson arrived in the first week of August to work for a month on making the machine at Mt. Braddock capable of producing rings. During the next month two people win be assigned to carry through Anderson's work, and to plan and implement future machines in the U.S. Specifically, the concepts of small satellite plants serving out-of-the-way ingot and con tinuous casting mins, and of insitu plants will be. examined. " 1'' * Ferrux Restaging: C. Holley's assumption of responsibilities for this area has led to a general review of all aspects of-manufacturing and selling of topping compounds. The result has been recognition of a deemphasis,in techni cal sales of the product line, and of manufacturing.inconsistencies that have caused a variable quality output. Consequently, a sales training seminar will 2431 E. HOT TOPS Monthly Report JULY l 1. Asbestos-Free Conversion Program a) Objectives, Scope and Potential Impact -- Eliminate asbestos and develop asbestos-free recipes. b) Project Status - No further complaints of asbestos contamina tion of products. Asbestos-free programs at all plants are at the "recipe-refinement" stages and product quality is improving. c) Proposed Action - Continue vigilance on contaminated recipes. 2. New Seal-On Programs a) Objectives, Scope and Potential Impact -- To follow-up the various Seal-On programs. b) Project Status 1) Beth.-Burns Harbor - Castings not yet in, but a wooden mock-up of the casting will be used to test the logistics in the plant. % 2) J & L - Warren - Has requested an alternative design to reduce shoulder roll-over. c) Proposed Action - follow up on delays. 3. Four-piece Wedging Hot Tops a) Objectives, Scope and Potential Impact -- To design and test alternatives to 8 pc. tops. (Origin January, 1975) b) Project Status - Due to a three week shut-down, little progress has been made. Sales will test fit the boards early in August. c) Proposed Action - await Sales report. 4. Yield Loss Problems at Interlake, Riverdale a) Objectivesx_Scope and Potential Impact -- Replace the previous 8 piece top by a one-piece design. ^ b) Project Status - Problems of green strength with the asbestosfree recipes. \ c) Proposed Action - Continue testing in the mill when tops are available. ! 2432 A. Eastern Region, continued ! I 2. FUTURE VARIANCES, continued The plan to recoup the other sales losses noted above includes the following: r - Trials are underway to manufacture Seal-On casting boards on the K-4 equipment at Mt. Braddock. lf.,this proves successful, programs will be launched at U.S.S.-Ouquesne for a share of% their business based on better quality, J L - Aliquippa for a major share of their business based on reduced dust, Bethlehem-Lackawanna for a bigger share of their business based on better quality. A substantial pickup in busi ness at these three accounts will wipe out the losses noted above. In addition, work continues on recipe development of the non-asbestos Premix at Mt, Braddock for improvement to gain this business back or to control the major share of it. Also, we will proceed to develop a silica-free recipe as soon as possible so that we can get the jump on this problem. If the seamless pipe business comes back in late August and September, our business level at both Armeo-Ashland and Wheeling-Mingo will sub stantially improve. - The identification of defective TEEBRIX by the representation from Nippon will allow us to remove these from the various inventories and to improve the TEEBRIX performance at the present test sites, including Wheeling-Mingo, Huntington A1loy-Burnaugh. The Specialty Steel Sector has noted sales in excess of $200,000 for the past two months. Aside from the July and August vacation shutdowns these sales should remain at or exceed this level for the remainder of the year. Although it will be necessary to sell over $6,200,000 in the last six months of 1976, there is still a possibility of making the original $10,831,000 1976 budget in the Eastern Region. 3. PROJECT PROGRESS a. Non-asbestos Recipes The Mt. Braddock Plant is now completely converted to non-asbestos recipes. TO DATE THE NON-ASBESTOS KALMINEX RECIPES ARE EXTREMELY DIFFICULT TO RUN AND CAUSING VERY HIGH SCRAP AND VERY LOW PRODUCTIVITY. ALL TiEVEl'oPMENT EFFORTS ARE BEING CONCENTRATED ON SOLVING THESE PROBLEMS BUT UNCONTROLLABLE COSTS WILL REMAIN HIGH UNTIL THE RECIPE PROBLEMS ARE RESOLVED. b. K-4 Startup 1 The first K-4 is starting in limited production as of this writing with the FIL top tool assembly appearing to operate satisfactorily. After the first truckload of material has been satisfactorily made, a similar top tool assembly will be ordered for the second K-4. 2433 OW Uooo