Document banxwXKMnnn1y0xOYGeYZonj3

TO: *As Lis ted FROM: J. C. Susil *N. N. Coulter J. C. Doedyns D. G. Whitcomb M. A. John D. 0. McDaniel C. K. Iorio T. L. Markham November 28, 1978 Tmrj,?noiffrf W. R. Tinman S. Gregorcyk G. A. Baumgartner G. L. Cade C. F. Hall G. E. Wallace ARTHUR BROTHERS CONSTRUCTION PROCEDURES Attached for your use and reference is a revised copy of ARTHUR BROTHERS CONSTRUCTION PROCEDURES. It is expected that improvements will be developed as we go. Any suggestions you have to make operations smoother will be appreciated. JCS:ds Enc. cc: Jim League - Pampa G.J. Hayman Roger Farrow - Clear Lake Jim Harper W.F. Soward - Bay City W.W. Hampton Bill Hartman - CCCTC 002026 ARTHUR BROTHERS CONSTRUCTION PROCEDURES November 28, 1978 MATERIAL Material required by ABI is obtained in the following ways: 1) Material for a job is usually ordered by the Celanese Engineer. This material can be withdrawn from the warehouse whenever ABI is ready to work on a job. If material is short on a job ABI can write a requisi tion for the shortage and get the Engineer in charge of that job to approve the requisition or ABI can inform the Engineer of the shortage and request him to order the necessary material. 2) Material for the ABI overhead cost accounts is obtained by ABI writing a requisition. These requisitions are sent to the Plant Engineering Superintendent for approval. 3) Material can be ordered directly from the companies with which there are open purchase orders. Writing of requisitions to cover these purchases is covered under "INVOICES". 4) A list of supplies and expendable items which can be obtained from the Tool Room or Warehouse is attached (ATTACHMENT A). If these items are out of stock or in short supply they can be obtained by any of the methods mentioned above. INVOICES Accounting sends all invoices for items that ABI has requisitioned to ABI for approval. These invoices are checked for correct price and proper cost coding. These invoices are approved by the ABI Superintendent and then forwarded to the Plant Engineering Superintendent who approves and returns to Accounting. Invoices for items ordered against open purchase orders are checked against the ABI release tickets. If they agree, a requisition is written and the requisition, along with the invoice and release tickets, is forwarded to the Plant Engineering Superintendent. The requisition is then approved and sent to Accounting. MANPOWER The ABI Superintendent is responsible for analyzing and forecasting man power requirements based on projected workloads. Major changes in man power requirements will be reviewed with the Plant Engineering Superin tendent to see if schedules can re rearranged to permit leveling of man power requirements. The ABI Superintendent then makes adjustments in manpower level as needed. Authorization for overtime is secured from the Project Engineer, Engineer ing Group Leader, Plant Engineering Superintendent, or appropriate Operations Representative. 002027 November 28, 1978 MANPOWER (Continued) The ABI Superintendent is responsible for all ABI personnel on the plant site. All matters of employment of ABI personnel, including qualifications, supervision, and disciple, are an ABI responsibility. CONSTRUCTION OVERHEAD Jobs done by ABI are billed at the monthly average hourly rate plus the ABI mark-up which covers payroll taxes, insurance, employee benefits, and profit. An additional charge is applied to all capital jobs to cover overhead costs which are paid directly by Celanese. This charge ranges from 10% - 30%, and is adjusted periodically to offset actual cost. Construction overhead costs which are paid directly by Celanese are charged to the cost accounts as defined in ATTACHMENT B. Salaries and wages for the ABI Superintendent, the Safety Coordinator, and the Office Clerks (Payroll, etc.) will be accumulated separately each month. The total of these wages and salaries will be divided by the total ABI hours worked, and the resultant charge/hour will be added to the ABI average hourly rate. In this way, the in-plant ABI administrative cost will be allocated to all ABI manhours worked, whether expense or capital, instead of being charged strictly to the 24900 (construction overhead) account. General Foremen will be charged directly to overhead unless their time is spent exclusively on a major project. In general, expendable supplies and rental equipment are charged to the overhead account. However, special items for a particular job only, may be charged directly to the project. For example: 1) If weldrod for a specific job is of a type not commonly used, or if i.t is required in quantities, large enough to be delivered directly from the supplier to the project, then those charges go directly to the project. Weldrod bought from the warehouse is normally charged to the overhead account. 2) Equipment required for a project is charged to the overhead account. However, if a project wishes to use a piece of equipment exclusively, to the exclusion of all other projects, then that equipment cost should be borne by that project. REQUISITIONS All requisitions for material, office supplies, equipment, etc., written by Arthur Brothers are approved by Arthur Brothers' Superintendent. After approval, by Plant Engineering Superintendent (or the Project Engineer if requisition is charged to a project), requisitions are handled as follows: 1) Sent directly to Purchasing - Purchasing orders needed items, arranges for our equipment to be repaired, etc., and returns a copy of the purchase order to ABI. 002028 -2- November 28, 1978 REQUISITIONS (Continued) 2) Sent to Material Expediter - Items under $25 can be purchased from petty cash. He also assists in obtaining items needed in a hurry by letting Transportation pick them up on their trips to Corpus Christi, Kingsville, etc. EQUIPMENT Arthur Brothers makes out a requisition for additional equipment or to get equipment repaired, and it goes to Plant Engineering Superintendent for approval. It is processed in the manner described in the section on requisitions. Additional dump trucks with drivers are rented on open purchase order limited to a certain number of hours. Vacuum trucks for Arthur Brothers are obtained by calling the Labor Office and letting them arrange to get one on their open purchase order number. Rental of equipment from ABI should be avoided in order to minimize potential for conflict of interest. TOOLS Arthur Brothers furnishes all tools under $200. Supplies and expendable items, which are furnished by Celanese, are specified on the attached list (ATTACHMENT A). Celanese furnishes all tools over $200 and specialty tools. Most expendable items are obtained at the Warehouse or Celanese Tool Room. Items which are not stocked in the Warehouse or Tool Room are obtained by writing a requistion and processing as described above. -3- November 28, 1978 REPORTS PREPARED BY ARTHUR BROTHERS 1) Daily Schedule Written by: Distribution: Purpose: ABI Maintenance (5) K. Nix J. C. Susil J. Doedyns R. Harden Norman Coulter D. Lockwood Safety Warehouse Arthur Bros. Foremen (4) Gives information to Celanese management and aids Arthur Bros, foremen in scheduling next day's work. 2) ABI Construction Status Report (Weekly) Written by: ABI Distribution: J. C. Susil (6) - Chemical Company Report J. Doedyns (Plastics Company Report) J. Marian (Plastics Company Report) J. C. Susil (Plastics Company Report) M. A. John (Chemical Company Report) Chemical Maintenance (6) (Chemical Company Report) 3) Monthly Equipment List (Rental & Celanese) Written by: ABI Distribution: J. C. Susil and J. C. Doedyns Purpose: List of current rental equipment and Celanese equip ment which is assigned to Arthur Brothers. Also gives rental rates and payout date on rental equipment. Any movement or disposition of equipment should be noted. 4) Construction Manpower Projection (Monthly) Written by: ABI Distribution: J. C. Susil (2) M. A. John J. C. Doedyns Purpose: Forecast future requirements from projected workload in order to allow leveling of manpower and planning of ABI hiring requirements. 5) ABI Overhead Cost Analysis (Monthly) Written by: ABI Distribution: J. C. Susil and J. C. Doedyns Purpose: Report monthly charges to overhead cost accounts for control of 24900 account. 002030 -4- November 28, 1978 REPORTS PREPARED BY CELANESE 1) Weekly Arthur Brothers Personnel Report Written by: D. 0. McDaniel Distribution: R. W. James J. C. Susil M. A. John T. L. Markham Norman Coulter D. G. Whitcomb P. J. Volpe Purpose: Gives numbers and types of people on Arthur Bros, payroll. 2) Weekly Labor Distribution Written by: Computer printout from timecards. Distribution: D. 0. McDaniel (Chemical Maintenance) Mr. Pinkston (Celcon) Mr. Harden (Celcon) Norman Coulter (Crafts) Purpose: Shows what job each man's time was charged to. 3) Monthly Purchase Order Commitments Summary Written by: Computer printout. Distribution: J. C. Susil Norman Coulter Purpose: Listing of purchase orders for construction supplies which are charged to construction overhead. 4) Work Order 24900 Report Written by: Computer printout. Distribution: J. C. Susil Norman Coulter Purpose: Shews material commitments against construction overhead accounts. 5) Monthly Labor Distribution Written by: Computer printout. Distribution: Complete report: Ms. Ferguson,. Mr. Simank Purpose: Mr. Pinkston (Celcon), Mr. N. Coulter, Mr. Downing D. 0. McDaniel (Chemical Maintenance) To convert labor distribution to dollars. 6) ABI Equivalent Headcount Written by: General Accounting Distribution: D. G. Whitcomb J. C. Susil A. C. Enlow B. P. Hanson T. L. Markham P , J. Volpe M. A. John I, R. (Recap page only) Purpose: Recap total monthly ABI work force in terms of average men per month and 40 hours per week. -5- 002031 November 28, 1978 ATTACHMENT A SUPPLIES & EXPENDABLE ITEMS FURNISHED BY CELANESE January 1, 1977 ITEMS 1) Chipping Gun Points 2) Concrete Breaking Points 3) Diamond Point Chisels 4) Masonry Drills 5) Drill Bits 6) Reamers 7) Taps 8) Replacement Dies 9) Torch Lighter Flints 10) Welding Hood Lens 11) Cutting Goggles Lens 12) Welding Leads & Grounds 13) Blasting Hose, Nozzles, & Connectors 14) Welding & Cutting Units & Accessories 15) Welding Supplies (Electrodes & Gases) 16) All Files 17) All Pipe Cutter Wheels 18) Cutting Oil 19) Penetrating Oil 20) All Lubricating Oil 21) All Greases 22) Permatex 23) Graphite 24) All Wire Brushes Special Order Special Order Special Order Special Order 002032 Page 2 -- ATTACHMENT A 25) Wire Buffing Wheels 26) Grinding and Cutting Discs 27) Grinding Stones & Wheels 28) All Abrasive Cloths 29) Grinding Compound 30) Needle Gun Needles 31) Sandblast Hood - Clear Glass 32) Air Hose & Authorized Fittings 33) Tarps 34) Drop Cloths 35) Water Hose 36) Paint Hose 37) Metal Markers (Stencils) 38) All Gasket Materials 39) Rags 40) Janitor Supplies 41) Gloves for use with Toxic Chemicals 42) Hand Cleaner 43) All Wire Rope 44) Chokers & Slings 45) Rope (Manila) over 5/8" 46) Filter Mask for Tank Car Rack 47) Bits for Shears 48) Ice & Salt Tablets 49) Carpenter Chalk & Powder 50) Hammer Handles November 28, 1978 Special Order Special Order Special Order Safety 002033 Page 3 - ATTACHMENT A 51) Shim Stock 52) Soap Stone 53) Lumber Crayon 54) Band-It Materials & Buckles 55) Curing Compounds 56) All Saw Blades 57) All Brushes November 28, 1978 002034 November 28, 1978 ATTACHMENT B ARTHUR BROTHERS OVERHEAD COST ACCOUNTS (2-4900-XXX) Cost Acct. Description Remarks 901 Salaries (Labor Only) All ABI overhead salaries. Includes general foremen, except superintendent and clerical help as defined on Page 2 "Construction Over head", clerks, warehousemen, and instrument men. Foremen and leadmen are charged directly to the jobs they supervise. 906 Rentals Includes all leased or rented equipment, tools, (Material & Labor) furniture, office machines, vehicles, etc., used on construction. Operators for cranes, cherry pickers, go-devils, etc., are charged to labor. 908 Janitorial & Janitor services and supplies in construction Clean-up offices, clean-up outside battery limits of (Material & Labor) jobs and around shops. Clean-up at jobsites should be charged to work orders. 909 Equipment Repair Repair and maintenance of rented and Celanese (Material & Labor) owned equipment. Mechanics and mechanic helpers are charged to labor. Also includes routine servicing and inspection. 912 Office Supplies Stationery items and other expendables. Does (Material Only) not include furniture or equipment. 917 Testing & Environmental testing, welder qualification Lab Services tes ts. (Material & Labor) 919 Show-up Pay (Labor Only) Per contract. 921 Benefits Distribution of drinking water and lunches (Material & Labor) for unscheduled overtime. 922 Temporary Installation, erection, or construction of Facilities temporary construction facilities as requested (Material & Labor) or approved by Celanese Plant Engineer. 923 Construction Supplies and consummable items which are not Supplies directly chargeable to individual work orders. (Material Only) 927 Purchased Equip Purchase cost of equipment and tools costing ment & Tools $200 or more which are not furnished by ABI (Material Only) 002035