Document YG7eOqkX0E4p5b6N3VR7GOZEk
DISTRIBUTION SHEET
PRODUCTION DIVISION COST REDUCTION PROGRAM SUMMARY REPORT
M. E. Baker - B-16204 E. V. Beebe - Experimental Station J. Blackwell - B-17270 H. B. Clark - B-17204 J. B. Coleman - B-16270 S. C. Doberstein - Jackson Laboratory D. I. Garnett - Experimental Station 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 C. I. Smith - B-17249 G. C. Tunis - B-6237 F. A. Vogelsberg - Edge Moor R. S. Weis - B-17202 P. A. Wriede - Jackson Laboratory
OH-2 "KV. 7-40
ISTMUSMCO M02
E. I. d u Po n t d e Ne mo u r s & Co mp a n y
INCORPORATED
Wil min g t o n , De l a w a r e 19898
CHEMICALS AND PIGMENTS DEPARTMENT
TO: ADDRESSEES FROM: W. H. MC COY
I/*
Wilmington, Delaware August 4, 1982
COST REDUCTION PROGRAM 1982 FIRST 6 MONTHS' RESULTS
HIGHLIGHTS
Year-to-date savings through June total $35.4MM, 68% of their commitment for the year, 47% of goal.
The "current estimate" of year-end savings is $77MM, equal to goal, and 148% of the commitment for the year.
Five plants predict a shortfall vs. commitment, while 9 plants predict exceeding goal.
Sixteen plants anticipate achieving savings of over $1MM. Ten have already done so.
Three large plants are now forecasting they will not meet their original commitment (Beaumont, LaPorte, and Memphis). Their combined commitment is $7.7MM. They anticipate achieving $6.5MM, a shortfall of $1.2MM, which is more than made up by other large plants.
In general, most of the plants are having trouble achieving their goal savings in the ingredient category due to lower-thanforecast production rates. This is more than offset by greaterthan-anticipated personnel reductions.
The following comments are intended to point up where we are having difficulty meeting our commitments and goals and the off setting highlights -- by exception:
Beaumont's modest shortfall vs. committed ($133M) is accounted for by cancellation of yield optimization program. Manpower was shifted to work on the new plant.
Chambers Works is predicting an $18.2MM savings for C&P vs. a goal of $17.3MM. The improvement is essentially all in the labor and salaries category -- accomplished through personnel reductions. Savings from their other programs are expected to be as forecast.
DUP050145777
N 26468.01
ADDRESSEES
2
8/4/82
Comments (Cont'd)
Cleveland is having trouble, as are most of the plants, in achieving predicted ingredient savings due to low production rates and/or postponed savings projects. Fortunately, lavor savings have off set this to a large extent.
Deer Park overall is on target vs. "committed". Meeting goal would require higher capacity operation.
DeLisle anticipates exceeding goal by $1.5MM. Reduced use of outside contractors, not forecast, accounts for the large improvement. Other items are on target.
East Chicago cost reduction efforts have exceeded expectations mainly in use of H2O2 ($115M), energy ($250M), and personnel reductions ($410M).
Edge Moor now anticipates year-end savings of $7.6MM vs. a commit ment of $2.4MM and a goal of $3.5MM. The big tag items behind this are advancing alternate coke use ($1.0MM), improved finishing yield ($0.6MM), reducing substandard production by 75% ($0.5MM), a force reduction valued at $1.3MM, and better-than-expected micronizer control {$0.6MM) .
Johnsonville currently estimates it will exceed its goal by nearly $3MM by year-end. Recovered ore feed ($1MM), extended spare part fabrication (S0.4MM), inventory reduction ($0.3MM), and reprocessing of substandard R-101 via dry blending ($0.25MM) accounts for the
- majority of the improvement expected.
LaPorte estimates it will miss its commitment by $180M, primarily in the field of energy savings (-$126M) limited by production and maintenance materials (-$100M) partially caused by cancelled projects in the sulfuric area.
Memphis forecasts a shortfall of $855M or 21% of "firm" primarily due to production rates being lower than forecast -- $1.4MM in energy and $0.67MM in ingredients offset by labor reductions greater than forecast.
Newport1s labor and salary reductions will exceed forecast by nearly $0.9MM, roughly 40% of the total "firm" projection according to their current estimate.
Niagara expects to exceed their goal by $660M, primarily as a result of improved yields of Teracol from THF ($195M), fuel to steam ratio in power ($200M), and maintenance costs ($229M).
Repauno is now estimating labor savings of $1.4MM vs. goal of $0.6MM in that category. This more than offsets difficulties in obtaining forecast ingredient savings due to lower-than-anticipated produc tion rates.
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