Document VGvwqYp2ggqDN1XoJzYnZyxe8

FILE NAME Corning OC DATE 1965 May 24 DOC OC0126 DOCUMENT DESCRIPTION Internal Report Kaylo - Long Range Planning See Pg 3 Profitability | te KOLAS KOLAS | COMPANY CORRESPONDENCE cf R. L. STAFFORD BA Toledo / Iram ( . Yubject . MICHAEL HARDWICK - Berlin . . KAYLO - LONG RANGE PLANNING PERSONNEL ) Dete to . . . MAY 24 1965 M. D. BURCH - TOLEDO B. E. BoYD - Toledo AFTER REVIEWING QUALIFICATIONS THE KEY PLANT PERSONNEL LONG RANGE POTENTIAL AND THEIR BACKGROUNDS PARTICULARLY THE REPLACEMENT PEOPLE FOR THESE KEY PERSONNEL 1 CAN FIND NO BETTER EXPRESSION TO EXPLAIN MY APPRAISAL THAN ALARM THE RESULTS OF THIS APPRAISAL OF PLANT DEPTH AND STRENGTH TO SUSTAIN THE LONG PULL OF FUTURE GROWTH IMPROVEMENTS PROFITS SALES AND PRODUCTIVITY ADDED TO AND MAGNIFIED THE IMPRESSION WHICH HAS BEEN SLOWLY FORMULATED CORPORATE AND DIVISION SITUATION AND LONG RANGE FUTURE You Will IN MY APPRAISAL OF AS CONCERNS KAYLO FIND ALSO ATTACHED OUR ITS SHORT HY APPRAISAL OF THE CAPABILITIES -- --OUR STAFF AREAS TO ASSIST KAYLO IN STRENGTHENING ITS POSITION IMPLEMENTING ITS GROWTH AND . CONTINUING A TREND OF INCREASING PROFIT LEVELS , How A SITUATION CAPABLE SITUATION SITUATION OF 8 WHEREIN A PROFIT LEADER MILLION ANNUAL SALES COULD AND BE ENTIRE FACILITY SO ISOLATED AND UNATTENDED IN THE OVERALL CORPORATE PLAN 15 BEYOND UNDERSTANDING AND BASICALLY BESIDE THE POINT IT DOES EXIST IN THIS STATE AT THIS TIME THE FOLLOWING ARE SUBMITTED TO SUBSTANTIATE THIS BOLD STATEMENT ) FIELD SALES HAVE REQUESTED AN PRODUCT LINE FOR IMPROVED PRODUCT ACTIVITY - NONE RESULTS NONE IMPROVED Process KAYLO MPC QUALITY FOR THE PAST 5 YEARS 2 A PATENT HAS BEEN APPROVED ON AN OWENS CORNING FIBERGLAS PROCESS DEVELOPED IN 1961 FOR THE PRESSURE FORMING OF KAYLO MPC WHICH HAS POTENTIAL FOR YIELDING THE DESIRED END PRODUCT ACTION - NONE UNTIL MARCH 1965 WHEN BERLIN PLANT BUILT THEIR OWN , PROTOTYPE ALTHOUGH REQUESTED GENERAL ENGINEERING HAS SHOWED NO INTEREST DUE TO CURRENT WORK LOAD IN OTHER AREAS 3 EXPANSION REQUIREMENTS TO MEET SALES INCREASES WERE FORECASTED IN 1963 1964 1965 ACTION - NONE RESULTS - 10-15 INCREASE OUE ONLY TO PLANT EFFORT 4 FOR A 105,000 901 FOR BUILDING REVIEW OF OVERALL LONG RANGE _REQUESTED ACTION - NONE REVISIONS APPROVED IN 1965. REQUESTS PLANT LAYOUT IN LIEU OF EXPANSIONS ~ CONTINUED | 7 e .PAGE 2 KAYLO - LONG RANGE PLANNING PERSONNEL Cy 5 BATCH PACKAGING AND DIRECT MATERIALS COSTS INCREASING AT 2- 20 COSTS PER ANNUM CORPORATE THIS COMPRISES 43 OF PROGRAMS IN PROGRESS - TOTAL NONE MANUFACTURING REQUESTS FOR HELP HAVE BEEN MADE - ATTENTION - NONE 6 LABOR COSTS AS PER CENT TOTAL COSTS 35-37 WILL INCREASE WITH TIME AND NEW CONTRACTS SOLUTION - MECHANIZATION REQUESTS FOR PLANT LAYOUT STUDY MECHANIZATION EQUIPMENT OTHER LABOR SAVING PROGRAMS - ACTION MINOR METHODS ENGINEERING NONE- GENERAL ENGINEERING OR PROCESS DEVELOPMENT ; os 17 17 PRODUCT DEVELOPMENT Pe roa PROGRAMS - None ~- 8 PROCESS DEVELOPMENT PROGRAMS - NONE OUTSIDE PLANT 9 BATCH R & D me meme eee PROGRAMS - NONE -- . em OUTSIDE PLANT re ree re ew ed THIS STORY COULD CONTINUE FOR HANY PAGES HOWEVER IN THE INTEREST OF CORPORATE PROFITS AND FUTURE GROWTH WE MUST FACE THIS AREA HEAD ON AND THIS MEMO S INTENDED TO FORCE THE FACTS OUT ON THE TABLE IN HOPES THAT CONSTRUCTIVE ACTION WILL BE OBTAINED FINALLY I SUBMIT TO YOU THAT THE BERLIN OPERATION AND KAYLO AS A PRODUCT LINE GROSS MARGIN HAS RISEN FROM AN 11 GROSS OVER THE PAST THREE YEARS MARGIN TO A 25 PLUSACOMPLISHED THIS WAS ACCOMPLISHED AT 90 JOB EFFICIENCY LEVEL WITH OLD EQUIPMENT AND PLANT OUTDATED PROCESSING 35 LABOR AND 43 MATERIAL COSTS I AM REMINDED OF AN IMPRESSION I HAD UPON MY TRANSFER FROM THE TEXTILE PRODUCTS AREA TO GENERAL AT THAT PRODUCTS Time THE IN 1963 GENERAL IN PREPARATION FOR CONSENSUS WAS THAT THE WAXAHACHIE A WOOL MACHINE START WAS A RAMBLING TOUGH AND TUMBLE OPERATION WHICH COULD BE PROFITABLE UNDER THE WIDEST VARIANCE OF OPERATIONS CONTROL THIS IS IN FACT ABSOLUTELY RIDICULOUS AND FORTUNATELY YOU FOR IMPROVED CONTROL OF WOOL FORMING THAT HAVE WILL SPEARHEADED A DRIVE RESULT IN MAJOR GAINS IN PROFITABILITY | SUBMIT THAT ANY MANUFACTURING OPERATION MUST 1 HAVE THE FOLLOWING INGREDIENTS IN ORDER TO BE PROFITABLE OVER THE LONG HAUL AND KAYLO IS NO DIFFERENT ) TECHNICAL KNOWLEDGE IN BASICS OF PRODUCT FORMATION AND STRUCTURE 2 PROGRESSIVE IMPROVEMENT PROGRAMS IN BOTH SHORT RANGE PROCESSING EQUIPMENT AND MATERIALS AND LONG RANGE RESEARCH AND DEVELOPMENT PROCESS IN oe MATERIALS ee eee ee AND TECHNOLOGY 3 PRODUCT DEVELOPMENT - NEW PRODUCTS 4 ~ ENGINEERING ADVANCES IN ALL PHASES OF MANUFACTURE .- . . 125 - < . . + PxCE 3 LONG KAYLO - LONG PERSONNEL RANGE PLANNING 5 ( MECHANIZATION INNOVATIONS AND METHODS IMPROVEMENTS LAST BUT NOT MANUFACTURING A PLANT STAFF LEAST TO UTILIZE THE ABOVE - LEADERSHIP IN WITH TECHNICAL UNDERSTANDING OF THE PROCEss MUST BE TECHNICALLY QUALIFIED TO OPERATE THE FACILITY ON THE SHORT RANGE WITH DEPTH IN TRAINING FOR EXPANSION AND REPLACEMENT = a - ~ he or wo i KAYLO HAS A FUTURE WITH HELP OF THE QUALITY AND AGGRESSIVENESS CURRENTLY GIVEN WOOL AND A TOP PROFIT OPERATION TEXTILE OPERATIONS KAYLO NEEDS SUPPORT KAYLO COULD BECOME AND ITS SHARE OF ATTENTION FOR THE FUTURE YOU ARE CHALLANGED AS ARE WE AT THE PLANT TO BEGIN NOW BUILDING THE FOUNDATION REQUIRED FOR FUTURE GROWTH AND PROFITS, KAYLO is PART PROUD TO BE ONE STAY THERE WE OF Owens Corning OF THE COMPANY'S NEED YOUR HELP . FiberGLAS CORPORATION AND DAHNCo PROFIT LEADERS WE INTEND TO . MDB - . . : . we POTS aa i) 4 on ; he be t a . is eae aa \ . t.. }.. oo