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DISTRIBUTION SHEET PRODUCTION DIVISION COST REDUCTION PROGRAM SUMMARY REPORT M. E. Baker - B-16204 E. v. Beebe - Jackson Laboratory J. Blackwell - B-17270 F. B. Bredimus - B-17249 H. B. Clark - B-17204 S. C. Doberstein - Jackson Laboratory F. E. French - B-6214 D. I. Garnett - Experimental Station A. T. Gentilucci - B-17249 J. P. Glas - B-17206 P. J. Grunwald - B-9237 R. W. Hess - Edge Moor P. A. Hopkins - B-17249 B. F. Kennedy - B-17249 F. Knowles - Experimental Station N. E. Krauss - Jackson Laboratory R. W. Kurek - B-16252 P. Z. Larson - B-17202 J. D. Lojewski - B-17249 R. J. Lombardo - B-17249 R. J. Mattson - B-17249 P. L. Meredith - Experimental Station P. M. Norling - Experimental Station R. J. Pavlin - B-17302 C. C. Quarles - B-6206 F. A. Vogelsberg - Edge Moor R. S. Weis - B-17202 CM-I MEV. 740 E. I. d u Po n t d e Ne mo u r s 51 Co mp a n y WILMINGTON, DELAWARE 19898 CHEMICALS AND PIGMENTS DEPARTMENT May 11, 1983 TO: ADDRESSEES FROM: M. BARSZCZ 1983 COST REDUCTION PROGRAM FIRST QUARTER RESULTS Cost reduction efforts in the first quarter have yielded savings of $29.4MM, 33% of the Production Division's goal of $90MM. The current estimate of year-end savings is now $102MM. Three plants (Cleveland, Deer Park, and Healing Springs) currently anticipate savings below their commitment. Cleveland1s earlier forecast reductions had included yield and manpower savings in GBS, which will not be realized due to shutdown of that operation. Their current estimate of savings is $186M above their commitment for the remaining products. Deer Park's below forecast savings are principally a result of lower than forecast production rates. New programs have been identified to compensate for a portion of the shortfall. Healing Springs will fall short of committed savings principally due to lower than forecast prices for methanol and fuel oil. Eight plants have realized approximately one-half of their annual committed savings in the first quarter. Three other (East Chicago, Fortville, and Toledo) have already achieved their committed savings. DUP050145840 N 26478.01 Addressees 2 May 11, 1983 East Chicago's savings resulting from productivity improvements and manpower reductions were understated in last fall's cost reduction forecast. Fortville has exceeded forecast energy savings by $25M in the first quarter as a result of improved process control. Toledo has offset reduced savings due to lowerthan forecast production rates and raw material prices by unforecast manpower reductions. MB:pah Attachment DUP050145841 F IR S T QUARTER 1983 COST REDUCTION SUMMARY ($M ) 5 1 3 2 >u1 O JJ JJ O CO o fa u do ooiHvoo^t^momoo i r'-oooomroavinrH IO'OfOHCDl>>NOO (O lO V H 00 fO M O Cl r- a\ rH c* *r o ro r-~ 4) JJ JJ C (0 0ve JJ U -H (0 U JJ Pi 3 (0 au 10 3 C <c H 10 a jj S8 omoom^oMnoifoo oo'r'-r-^rocNO'omoo ^* ov co voc n^i-h i^n o^ v^o o rH rH CN HHOUCCNVO H CN m in in <n o r~- rH CN N* CO CTl n aHi oo VO m CN in CN rH vo H ov ro c n r> o' r- o m r- r- c n ro rH rH r-- CN rH Hr'HOOISOO'f O inoot'oooi^ai^'r'if r-t^rH in co co r~ m ov rH ro in c n ro c n au'oaioinoH ovoo inoirH'ON'ninooinm rH- n * h vo h r- -vp ov k kkk k kk rH oo n* m c n ro ro m r ro oo m .--i in ** VI1 o> in m CN O rH H ro vo in cn o CN O VD CM CM * o> as as as 0) JJ JJ gH ^inoo^M' (N rl O H* vo CN r* o 00 oo ^ p~ ov oo r- oo o' oo in o rH m n CO N \o m M* M* %* *** r* c n O rH o cn VO 10^*0^ m ^ av rH ro CM <J> H co os c m ro as ro in vo vo c m a\ CN CN IN* 00 vo v CN O rH vo ro Os in a* in CN rH r- >H VJ O jJ JJ cn U (0 oo 0 O O' fa U dfi CO J3 JJ c o z a ro 0 N H Q iH EH 0 in (2 oor-oooororocNinro i nooinooi^covoHh i o c n rH Tr^cNCNCNroioioairHmm r^r*-rOi-iororoiniocN rH ro o c m on oo CN O H1 OV H* in o c m co ovohovrmo m ro ink h t r-k ink rr vo c n CO O' rH CN CM VO O O' oo rH vo O' in 00 HT H VO CN 1" OO rH P ro^ h* oo HP CO ro rH ro c n O' in vo oo vo 00 in cn v as as CN CN CO fJouHaJ C< a jji O3' <3 JCJ o 6 3 a0) a rra<HHu* fa 0Ha CO kcl 3 CO JuC o Mu f0a) e fU0a co r0H 0 r4>H) u JU* f0a U 0 f0a r0H -fCHaO a0 o 00 0OHOH rrHH r0H foa O z -0Ho -faH-H>H JCJO U0 O0' *fa0 rfOMHa fJOUaJ JUJ f0a rHH rH a (w0 <o o O' Hc Uw a0 cn i>H O' a: crl rH 10 0 06 0 s 0 >3 r0H rH H > c oto fca o 3 J0uJ fOa f0a CHO JC fa ti a0 00 zz rr(HH0 C(0n r<HD JMJ o a> 0 z (H100 O' 1H0 Z r>HH 0) cH fa o c 3 'Oo 0 a r0H O0i Eoh TD c r0H jVj j 3 z 2 Eh 8 8 a Q Z D DU P050145842 N 26478.02