Document QgXJVXjRYGM386nq60we4qa78
Request For Capital Expenditures/Retirements
D'v,s,ONdrgfc Che*&<l Div.s o*
LOCATION
Chicago, Illinois
CONTROL POINT
097
JOB TITLE
Repair kiln firebox
REPORTING CLASSIFICATION
Expense
DATE APPROVED
JOB ORDER NO.
SUMMARY OF AMOUNTS
DESCRIPTION
LOCAL CURRENCY
ESTIMATED PROJECT COST
U.S. DOLLARS
~$*360------------
DISMANTLEMENT EXPENSE
TRANSFER EQUIPMENT
GROSS AMOUNT FOR APPROVAL LESS TRANSFER EQUIPMENT LESS SALVAGE OR TRADE-IN ALLOWANCE
NET CASH REQUIRED (COr- 3027)
$o3oO
, -36300
|
1
RETIREMENT DATA
COST DISMANTLEMENT LESS SALVAGE
AMOUNT
TOTAL - CHARGE RESERVE
DESCRIPTION AND REASONS REQUIRED
ECONOMICS os called for in General Procedure Memo#3
Attachment C. (Attach calculations)
ECONOMICS PERIOD
NET SALES NAT (P r o f it / s a v in g s ) TOTAL INVESTMENT
% ROI (o n t o t a l in v e s t .)
INTERNAL RATE OF RETURN PAYOUT OF NEW FIXED CAPITAL
REV.#
1 2 3 4 5 6 7
REVISION DETAIL (c r o s s a mo u n t s )
DATE
AMOUNT
CUM. AUTHORIZATION
Funds of ............. ...................... ...................................................................6360 are requested to repair the kiln firebox
SUMMARY OF ESTIMATED COST - D.toils on GOF-3027
ITEM NO.
DESCRIPTION
Repair kiln firebox
ESTIMATE NO.
STARTING' OATE
MATERIAL
LABOR
CompletedCOMPLETION DATE
ENGINEERING
TOTAL
3000 3260 100 6360
ITEM NO.
NET CASH REQUIRED
ACCOUNTING TREATMENT
DEPR.RATE
3000
3260
100
APPROVALS
N AME
Dr, $6f360 Expense as incurred
/j cS*
/f r
6360
DATE
r/iz/pr
ACCOUNTING TREATMENT / ECONOMICS APPROVEO BY DIV. CONTROLLER [CHECK BOX(ES)J
B>P
POST AUOIT PERIOD
P.OST AUOIT DUE DATE
DISTRIBUTION
DIVISION PRESIDENT/DIRECTOR ' CORPORATE Or FI CER
DESCRIPTION AND REASONS REQUIRED
A. PROPOSED WORK AND COST
Funds of ------------------------------------------$6360 are requested to complete the annual rebuilding of the large,
oil fired, kiln firebox.
B. PRESENT SITUATION
The oil fired kiln firebox as a result of high heat and normal expansion and contraction must be rebuilt each year; normally in December during low sales.
The firebox rebuilding was postponed from December due to extremely high sales, but the condition deteriorated so badly that repairs were scheduled for April.
C* JUSTIFICATION
The Chicago Plant is budgeted to make 10,000 k pounds of bulk litharge for 1979 to support the manufacture of lead stabilizers at the Chicago Plant, and lead-chrome pigments at Willow Island. Without the kiln, the plant would have to buy litharge. The yearly premium would amount to between $ 300 k and $ 400 k.
D* COMMERCIAL FACTORS
This order supports a plant budget as follows:
First Five (5) Months of 1979
Sales - Pounds
Sales - Dollars
Profit on Sales
4,086,000
$2,578,000
788,000 (30.6%)
Budget for 1979
Sales - Pounds
Sales - Dollars
Profit on Sales
8,650,000
$4,512,000
1,548.000 (34%)
E. DETAILS OF PROPOSAL
Remove and rebuild the kiln firebox. Realign kiln burners.
F, PRODUCTION FACTORS
This proposal will not alter product quality or production rates.
G. CONTINGENT FUTURE COMMITMENTS
This proposal will not require additional funds to complete.
CYWI 24-0006346
C VAJVAMX JD
H. ALTERNATIVES CONSIDERED Purchase litharge at a premium of three to four cents per pound. This would involve a $300 k to $400 k Increase In yearly costs. It is cheaper to make litharge than to buy it. Therefore, repair present kiln.
I. RISKS No operating rtsks are involved.
J* SUMMARY In order to continue the operation of the kiln which is required to manufacture the plants basic Ingredient, litharge, the rebuilding of the fi rebox Is mandatory.
CYWI 24-0006347