Document Qky0wwbJ7ZqjegMQpDDyebXM8
f CYAMAFV3/EJ
Request For Capital Expenditures/Retirements
VISION OR COMPANY
Organic Chemicals
LOCATION
Division
J.O. CONTROL POINT
Chicaao Plant
JOB TITLE
097
Purchase and install a Sulfuric Acid pump.
REPORTING CLASSIFICATION
DATE APPROVED
JOB ORDER NO.
Cl
5/18/81
OC-5380
SUMMARY OF AMOUNTS
DESCRIPTION
LOCAL CURRENCY
U*S. DOLLARS
e s t ima t e d p r o j e c t c o s t
S 3477
DISMANTLEMENT EXPENSE
TRANSFER EQUIPMENT GROSS AMOUNT FOR APPROVAL
!
',$35'77 ::' 1
LESS TRANSFER EQUIPMENT
LESS SALVAGE OR TRADE-IN ALLOWANCE NET CASH REQUIRED (cor-3027)
.$3'577 " J
RETIREMENT DATA
COST DISMANTLEMENT LESS SALVAGE
AMOUNT
876 100
TOTAL - CHARGE RESERVE
976
DESCRIPTION AND REASONS REQUIRED
ECONOMICS os called for in General Procedure Memo#3
Attachment C. (Attach calculations)
ECONOMICS PERIOD
NET SALES NAT (PRO f i t /s a v in c s ) TOTAL INVESTMENT
% ROI (ON TOTAL INVEST.)
INTERNAL RATE OF RETURN; PAYOUT OFiNEW FIXED CAPITAL
REV.#
1
! 2
! ' 3' M '4
5
! i. 'i 6 . Mi 7
REVISION DETAIL (c r o s s a mo u n t s )
dat e
a mo u n t
CUM. AUTHORiZ ATIDN-
Funds of------------------------------------------------------------------------------------------------------------------------------- $3577 are required to purchase and install a sulfuric acid pump for use in the manufacture of lead sulfate Heat stabilizers.
Description Stainless Steel Pump
Acq. Cost 876
Acq. Date 6-71
Disposition Scrap
SUMMARY OF ESTIMATED COST - Detoils on GOF-3027
ITEM NO.
DESCRIPTION
ESTIMATE NO.
STARTING OATE
COMPLETION DATE
^ IUO
tfhen aDDroved after approval
MATERIAL
LABOR
ENGINEERING
TOTAL
1 Acid pump
2950
2 Freight
50
3 Illinois Sales and Use Tax 4 Dismantlement
177
NET CASH REQUIRED
ACCOUNTING TREATMENT
Dr. Cr. Dr. Dr. Dr.
$3300. P. P. & E (2A320) $876 P. P. & E (61--320) $876 Res. for Depr (61-320) $100 Res. for Depr (68-320) $177 Expense as Incurred
DEPR.RATE
7 1/4%
3177
200 100
100 300
APPROVALS
100
3250 50
177 100 3577
04/
ntni
x
ACCOUNTING TREATMENT / ECONOMICS APPROVH) BY DIV. CONTROLLER (CHECK B OX(E S 0
7
POST AUDIT PERIOD
/
DAT E d/M/Sj
P.OST AUDIT DUE DATE
DIVISION PRESIDENT/DIRECTOR
DISTRIBUTION^^.
CORPORATE O FFI CER
5-77
NA 3006 REV. 5-77
2 OC-5380
5/18/81
Page 2 of 3
DESCRIPTION AND REASONS REQUIRED
Proposed Work and Cost
Funds of---------------------------------------------------------------------:-----------------------------------$3577 are requested to purchase and install a sulfuric acid pump for use in the manufacture of lead sulfate heat stabilizers.
Present Situation
The manufacture of lead sulfate heat stabilizers requires 520 pounds of`concentrated (93%) sulfuric acid per 5,000 pound batch. The acid is pre-weighed in a tank and pumped to a tank above the reactor by way of a submurged pump. The sulfuric acid is then gravity feed to the reactor after being diluted with water.
The present twenty year old submurged sulfuric acid pump is in poor condition and has recently been repaired. This pump has a. very limited life, and replacement parts are no longer available.
Justification
If Cyanamid is to continue as a major supplier of lead sulfate heat stabilizers budgeted for 2.7M pounds per year, the twenty year old sulfuric acid pump must be replaced.
Commercial Factors
This order supports a plant budget for lead stabilizers as follows:
(k$/lbs.)
Sales lbs.
$
Marginal Income $%
POS $%
Budget all stabilizers 1981
6,400
Budget sulfate stabilizers 1981
2,659
First quarter sulfate
stabilizers 1981
691
5,207 2,006
507
2,337 883 329
44.9
1,512
43.9
600
64.9
288
29.0 29.8 56.9
N14634.01
CYWI 25-0007337
! OC-5380
5/18/81
Page 2
Page 3 of 3
Details of Proposal A Taber one H. P. immersed acid pump will be installed as a direct replacement, delivery is 18 weeks from receipt of order.
Alternatives Considered An external pump would not provide the safety margin the submurged pump provides. Any other type of pumping system would require expensive modifications to the present system.
Production Factors This proposal will not alter product quality or production rates.
Contingent Future Commitments This proposal will not require additional funds to complete.
Risks No operating risks are involved.
Concise Summary Replace a worn out twenty year old pump to enable the uninterrupted production of lead sulfates.
CYWX 25-0007338