Document KJQG0nwVY7G6eN3LjxxgMmYX6
;anto
"ME * location, Sauget, 111.
June 27, 1968
CC: Messrs. J. R. McClain
J. W. Molloy'
Start-up Expense Budget for
R. D. Williams
Aroclor Expansion Project (CEA l800)
R. S. Yates
R. M. Kountz
Mr. W. A. Kuhn (2) General Offices
Attached for your approval is the Start-up Expense Budget for the Aroclor Expansion Project including estimates of Preparation Expense and Operation Expense. These estimates have been prepared to conform to policy given in Controller's Bulletin 12-0o and Organic Division Bulletin No. OA 5-1.
The totals for Preparation Expense and Operation Expense are summarized below.
Total Start-up Expense-$115,000
The total start-up Expense of $115,000 is approximately 7i% of the estimated capital provided on CEA 1800 for this project. The basis for the timing of the start-up is Revision No. 5 of the Master Project Schedule dated 5/20/68.
The attached pages give a detailed break-down of expense esti mates by type and an estimate basis for major expense items.
Service Account Number 916.55 vrill be used to collect Preparation Expense charges. These charges v.rill be closed out to the division start-up account (715*00) monthly.
Starting in July, a variance report comparing actual start-up expenses vrith budget will be sent to you monthly.
Budget
Mfg. Representative
Tc3
Ehw
STLCOPCB4055889
Preparation Expense Budget Aroclor Expansion (CEA 1800)
Job No. 916.55
Budget Item Factory Expense
Totals
3rd Qtr. 1967
4th Qtr.
1967
1st Qtr.
1968
Phase June 1968
Chemicals (505) .7,000
0
0
0
0
Utilities
5,150
0
0
0 1000
Mfg. Wages (570)
5,790 . 0
0
0
100
Mfg. OH
(578)
810
0
0
0
15
Salaries (575) 16,450 600 900 1500 1200
Salaries OH (578) 2,950 100 150
250 200
Factory Supplies
(590)
8,000
0
0
0
0
Laboratory (610)
3,300
0
0
0
0
Clothing & Laundry
(614) 2,900
0
0
0
0
Safety Equipment
(613) 400 0 0 0
0
TSD
(621) 3,000
0
0
500 500
Mech.Expens e(694) 20,000
0
0
0
0
Sub-Total -
75,750
2nd Phase I Phase I Phase II 3rd Phase II 4th
Qtr. July
Aug.
Sept. 'Qtr. Oct.
Qtr,
1968 1968
1968
1968
1968 1968
1968
0 1000
100
15 2200
350
0. 1000
965 140 1200 200
0 0 0 0 1650 300
0 0 0 0 4200 650
0 1000
965 140
7050 1150
7000 . 3150
4725 655
4200 650
7000 3150
4725 655
5200 300
0 1000 2000 3000 0 1000 1000 1300
6000 3300
2000 0
'2000 0
0 100
0
0
100 2800
2800
0 100 500 1000
0 1000
0 0 1000
100 1000 8000
200 200 2000. 0 10000 10000
200 0 10000
Other Expense
Vendor Fees (715) 5>000
Meetings
(798) 1,000
Office Supplies (864) 250
Sub-Total -
6,250
0
1
TOTAL -
82,000
00OOc5T5oO
000 000
0 00
0 0
0
0
0
1000
1000
2000 3000
3000
00
0 500 500 500 . 500
0 100
0
100 . 200
50
50
Estimated Preparation Expense for
Aroclor Expansion (CEA 1800) Job No. 916.55
3- -
1. Chemicals
$7*000
Phase I
Since only storage tanks and associated equipment
are involved, it is anticipated no start-up cost for
chemicals will be incurred.
$0
Phase II
Process simulation on new process equipment using
Aroclor 1242 -10,0000. @ $0.70/gal.
$7,000
2. Utilities
Phase I
------------
6/68
Steam < 15% Std. -
$900
Electricity @ 10% Std. - $100
' $T055
7/68
poo $100
$1000
$5*150
Phase II
. 10/68
Steam @ 40% Std. -
p500
Electricity @ 25% -
250
Purchased Water @ 50% Std. $400
$3150
3. Mfg. Wages Phase I
No.
Repairman
2
Second Operator 5
Std. Operator
2
cSwingman
1
Rate
3.705 3.540
3.405 3.855
Vac. & Hoi. @ 12.824% -
Phase II Premium Operator Still Operator Second Operator Swingman Swingman
4 4 4 1 1
3.660 3.620 3.540
3.855 3.620
Vac. & Hoi. @ 12.824% -
Hours 24
180 48 12
Cost
9 635 165
45 935 130 $1065
240 880
480 (1) 1735 48 170 60 230
320 (1) 1160 $4175
550 $4725"
$5*790
(1) New classifications. Will receive training on straight time. All others are regular department personnel and will be trained on overtime.
4. Mfg. Wages O.H. (13-993%) '
'.
$810
DSW 330083
STLCOPCB4055891
5. Salaries (Training, Start-up Planning, Preparation
for Start-up) Phase I
a. Mfg. Representative $300/mo. - 8/67 thru 12/67, $500/mo.
' . 1/68 thru 8/68'-
b. Production Supervisor
$250/mo. 6/68 thru 8/68
-
. e. Production Foreman $450/mo. 6/68 thru 7/68
4- -
$167450 .
$5,500
$750
$900
Phase II a. Mfg. Representative $500/mo. 9/68 thru 10/68
b. Start-up Foreman
$900/mo. 8/68 thru 10/68
c. Production Supervisor $250/mo. 9/68 thru 10/68
d. Shift Supervision 3 men $850/mo. 9/68 thru 10/68
6. Salaries OH (17-75%)
7- Factory Supplies
a) Housekeeping Equipment
b) Safety Signs
c) Equipment Tags
d) Safety Equipment e) Laboratory Equipment
.
f) Miscellaneous Start-up Supplies
-
.
8. Laboratory Develop routine methods for electrical property
measurement based on Organic Research Work.
t) Analyst Training 9- Clothing & Laundry (5% of Wages) 10. Safety Equipment
.
11. Technical Services a) Training Assistance Materials Engineer
c) IF0 Review
$7,150
$i.;ooo $2,700
$500 $5,100 .;$ 97500" $2,950 $8,000
$3,300
$2,900 $400
$3,000
DSW 330084
STLCOPCB4055892
12. Mechanical Expense
Phase I
' 2,000
Phase II
18,000
20,000
-5$20,000
Includes: "a} Equipment, Instrument and Electrical checkout ptior
to start-up (beyond nominal service provided by Engineering).
b) Alterations to equipment prior to and during process simulation (water batching).
c) Maintenance coverage during start-up.
13. Vendor Fees
$5,000
14. Meetings
$1,000
15. Office Supplies ' $507mcT. - '6/8 thru 10/68
$250
Total
$82,000
DSV\( 330085
STLCOPCB4055893
Operation Expense Budget Aroclor Expansion
(Over-and-Above Standard)
Budget Items
Totals
Phase I Phase I 3rd Qtr. Phase I Phase II Phase II 4th Qtr
Aug.'68 Sept.*68 '68
Oct.'68 Nov.'68 Dec. '68 1968
Utilities Salaries Salaries OH Factory Supplies . Laboratory Mechanical Expense
3,000
5,100- . goo
2,000 2,000 20,000
1000 0 0 0 0 0
1000 0 0 0 0
2000
2000 0 0 0 0
2000
1000 0 0 0 0 0
0
2,550
450
1,000 1,000 9,000
0
2,550
450
1,000 1,000 9,000
0 5,100
900 2,000 2,000 18,000
TOTAL -
33,000
oO)
CO CO
ooco
<Ji
7- -
Estimated Operation Expense for
Aroclor Expansion (CEA l800) (Over-and-Above Standard)
Following is the basis for estimating Operation Expense for the Aroclor Expansion Project. These costs are for over and above standard costs for chemical operation. All other costs were assumed at standard. '
Utilities (Tank farm on line prior to Mfg. Plant)
Phase I . Steam @ 15$ Std. - 900
Elec. @ 10$ Std. - 100 1000/mo. 8/68, 9/68,
10/68
$3,000
Salaries (Shift supervision on start-up) Phase II Shift Supervision 3 men @ $850/mo. 11/68 & 12/68
$5,100
Salaries OH (17.750$)
$900
Factory Supplies $i600/mo. over-and-above standard 11/68 & 12/68
$2,000
Laboratory $1000/mo. over-and-above standard 11/68 & 12/68
$2,000
Mechanical Expense Phase I -
. Phase II -
$2,000 $18,000 $20,000
$20,000
Includes;
All mechanical expense required for minor modifications and correction of facilities to obtain smooth and trouble free operation at design rate, quality and cost.
TOTAL -
$33,000
SiOs1 OS'"
STLCOPCB4055895