Document dQdNyaV45gDBJJrdXqBXaKx25

TENNECO OIL P&MV/ INTER-OFFICE MEMO To H. R. Bowers At Houston From Hersh At Flemington Subject MONTHLY HIGHLIGHT REPORT FLEMINGTON PLANT - OCTOBER 1984 Date Copy to November 1, 19 D. H. Carter G. E. Disch R. R. Neugoid C. Tabata 1. SAFETY A. Statistics Month Y-T-D Goa 1 Total Year Y-T-D Incidence Rate First Aid 1 5 6 Minor 00 1 Restricted Duty 0 0 1 Lost Time 0 0 0 Total Record. 0 0 0 8.T 0 0 0 0 Incidence goals are based upon 150,000 exposure hours. Total exposure hours for October is 12,037. Total exposure hours year-to-date is 119,104. Last lost time injury occurred on October 2, 1982. Total exposure hours since last lost time injury is 308,135. 1ncidt Rate C Total ' 8.t 1.3 1.3 0.0 2.6 B. General 1. The employee safety training subject for October was the annual review of Vinyl Chloride Standard CFR 1910.1017 and how it applies at the Flemington Plant. Highlights of instruction covered monitoring, exposure levels and respiratory protection, medical surveillance and record keeping. 2. A video camera monitoring system was installed in the plant parking lot area to upgrade security for employee vehicles. II. STATISTICS A. Production Summary B. Product ion Loss Report C. Quality D. Headcount E. Overtime Attachment 1 Attachment 1 1 Attachment 1 1 Attachment IV Attachment V TEN-FLEM 20015 1'BN 3856 Monthly Highlight Report Flemlngton - October, 19M Page 2 III. PERSONNEL A. Statistics Prod. RSD Sept. Y-T-D Medica1: Personne1: Pre t Reemployment Exams Annual Semi-Annual Exams Accident Treatments 0 15 1 Employment Applications Logged 37 Employment Interviews 1 Insurance Claims 19 Employed 6 Oriented Terminations Transfer In Transfer Out Promotions 0 0 0 0 0 7 131 7 1081 33 39^ 8 5 0 0 0 B. Genera 1 1. Conducted contract negotiations with ICWU on October 8, 9, 29, 30 and with IUOE on October 10, 2*, 31- Both present contracts expire 12:01 A.M. November 7. Strike contingency planning has been completed. 2. The Plant received favorable award from Arbitrator Wildebush stating we prevailed in the recent arbitration with the ICWU regarding the Union's allegations of management performing bargaining unit work. 3* We are presently experiencing a high incidence of long term illness (four hourly employees). This is resulting in the use of a somewhat higher than desirable quantity of overtime in order to provide adequate coverage and maintain a normal level of plant operations. IV. COSTS 1. Variable cost estimate for October favorable due to below budget steam and electricity costs. Steam cost is favorable due to below budget #6 fuel oil price coupled with a warmer than normal month of October; electricity cost is favorable due to success of PIP cost reduction program. 2. Conversion cost estimate for October favorable due to above budget production volume coupled with lower than budget variable cost as described in item #1. V. MAJOR PROJECTS AND ON-GOING PROGRAMS 1. Refrigerated Water System - Reduced Electrical Cost The auxiliary surface heat exchanger functioned routinely on well water during the entire month, thus continuing to effect additional electrical savings over and above that of using warmer cooling tower water. The exchanger was cleaned once during the month to maintain optimum heat transfer efficiency. TEN 3857 Monthly Highlight Report Flemlngton - October, 1984 Page 3 2. Hopper Car Vacuum System System continues to function well. During October 9.6m lbs. of resin was reclaimed for sale at Grade I price. Y-T-D resin re claimed is 107M lbs. 3 Hot Glycol Tracing System Expansion Work continued during the month to expand the capacity of the present hot glycol tracing system to further utilize it for re placement- of inefficient steam and electrical tracing systems currently in use at the plant. A. River Water Pump Replacement The 200 gpm pump purchased to replace the 1500 gpm pump presently used to supply river water to the plant has arrived. Installa tion has been scheduled for the first quarter of 1985- VI. CAPITAL $M Approved 10/31/8A Committed 10/31/8A Est. Spending 10/31/8A Est. Spending 1984 155 1A5 125 165 Maintenance service rate transfer to capital for October was $9.5M. Y-T-D total transfer is $92.7M. VII. ENVIRONMENTAL/REGULARTORY 1. Discharge To Groundwater/Discharge To POTW Permit A meeting was held with the NJDEP on October 3 to review the positions of the DEP and Tenneco prior to issuance of the initial interim permit. The major difference in positions remains the time schedule for lagoon closure. The DEP is requesting a nine (9) month closure schedule. We have documented our need for a twenty-four (2A) month closure schedule and forwarded it to the DEP on Oct. 12. We were assured this documentation would receive con sideration prior to a final timing decision. We antici pate receipt of the initial interim permit in November. TEN 3858 Monthly Highlight Report Flemington - October, 1984 Page V 2. RCRA Reclassification The above referenced meeting held on October 3 was initially called for discussion of our application for a change of RCRA classification from TSD to Generator status. Our position on this issue was reviewed and appeared to be accepted favorably by the DEP. As there was no EPA representation at the meeting (EPA declined to supply a representative) the DEP informed us they will review their findings with the EPA before issuing a final decision on the matter. 3. Disposal of Off-Specification Monomer Disposal of off-spec monomer by transfer from railcar to tank truck and ultimate incineration was successfully completed. k. FRA Inspection On October 16 a representative of the Federal Railway Administra tion informed the plant that he would be issuing us notifications of violation for not "wrench tightening" the cap plugs on the dome valves on two empty VCM cars which were being stored at Three Bridges N.J. prior to shipment back to the supplier. A full report on this matter was forwarded to both Distribution and Legal for further disposition. 5. Tax Revaluation The plant was visited by the Raritan Township Tax Assessor on Oct. 17 in reference to our filing for a tax revaluation. 6. Mr. W. Fogelsanger, Plant Environmental Coordinator, attended educational seminars during the month involving Right-To-Know legis lation, air stripping of contaminated groundwater, asbestos cleanup, and ground water. He has subsequently reviewed pertinent aspects of each of these subjects with our plant staff. VII I.OPPORTUNITIES Studies for determining the most cost effective strategy of plant operation have been completed. The studies concluded that cost benefits are maximized when the plant operates at a steady monthly production mode, fine tuning output to maintain an established inventory level, vs. operating at peak production rates coupled with frequent curtailments for inventory adjustment. The new operating strategy has been implemented. 1 (_ V' ) I' rEN 3859 Monthly Highlight Report Flemlngton - October, 198A Page 5 IX. VULNERABILITIES Two long term illnesses in the Maintenance Department are negatively impacting on plant maintenance efficiency. Over time is being used where required to avoid accumulating an unwieldy maintenance backlog. X. INDUSTRY TRENDS Sales demand continues approximately equal to plant output. The plant is now producing CBS Type 318-5 for the Compound Plant vs. CBS Terre Haute. XI. GENERAL COMMENTS Nothing to report. fEN 3860 Production, M Lbs. Variable Cost Est., $/Lb. Fixed Cost Est., $M -- Conversion Cost Est., $/lb. VCM/VAM Yield, % RFT, % Non-Offgrade, % Total Overtime, % Controllable Overtime, % Reactor Utilization, % Dryer Utilization, % Shipment, M Lbs. Attachment I PRODUCTION SUMMARY Past Month Actual Budget Year-To--Date Actual Budget Next Mont Est. 5711 .0**77 **55 . 1156 97-7 90.2 100 10.5 10.5 7**.0 62.3 5997 5225 .0525 **69 .1301 97.3 -- 99-3 18.2 16.0 ---- O .fc* OO 5**563 **56** . 121** 97.5 88.0 100 10.3 9-3 67.1 66.9 -- 52250 .0525 **690 .1301 97.3 -- 99-3 18.2 16.0 -- -- -- 5000 .0563 **50 13**3 97.3 92.0 99.3 1*.0 10.0 63.0 55-0 5000 Ending Inventory, M Lbs. Value of Finished Prod., $M Value of Raw Material $M 6605 2235 **07 6605 TEN 3861 PRODUCTION LOSS SUMMARY Reactor Capacity Product Mix Penalty Reactor Capacity @ Actual Mix Actual lMonthly Production Reactor Capacity Efficiency Reasons for Losses Reduced Running Mode 9196 kS7 8699 5711 65.7 2988 Attachment I I TEN 3862 October, 198A QUALITY Attachment III Product 31A 390 391 A00 Tota 1 E Grade M Lbs. 0.00 0.00 0.00 375.30 375.30 Off-Grade M Lbs 0.00 0.00 0.00 0.00 0.00 1. NOG for October was 100%. 2. RFT for October was 90.2%. RFT % 100.00 100.00 100.00 81.27 90.21 Non-Off Grade % 100.00 100.00 100.00 100.00 100.00 3. Two lots of A00 were E Grade due to low bound acetate content. Formulation adjustments brought the product back into specification. The two lots out of specification are shippable as prime product. A. Melt index problems- have been encountered with the current 318-5 run. Formulation adjustments have moved the most recent production back into the target range. 5. CBS has complained about the last compound run produced for them. As a result Burlington Compound Plant has requested slightly stiffer 318-5. The above mentioned formulation changes were made with that objective. 6. Kentile complained of "blistering" problems in both their Chicago and Brooklyn plants. A visit was made to Brooklyn by R&D, Production, Quality Control and Sales people from Tenneco. Brooklyn agreed to evaluate a truck load of 31A produced during the last run. No feedback has been received to date. 7- GTR, Ohio complained of a rail car of A00 resin which they were having problems unloading (resin bridging in all compartments). The car has been unloaded by them and used with no further comment to the Flemington Plant. TEN 3863  HEADCOUNT Exempt Non-Exempt Hourly -- Approved 23 6 44 73 Attachment IV Actual 23 6 43* 72 *In process of hiting replacement Maintenance Mechanic. TEN 3864 * A Absenteeism % of Total Training % of Total Vaca. Cov. X of Total CONTROLLABLE OVERTIME 1984 BY CAUSE Attachment V Jan. Feb. 167 209 20.0 25.6 Mar. Apr. May 119 13.1 43 63 8.0 20.3 June July Aug. Sept. Oct. 37 26&5> 198 63 10 a. 32.7 25.2 12.9 150 19.2 Nov. Dec. 00 0.0 0.0 24 0 2.7 0.0 0 0.0 00 0 0.0 0.0 0.0 0 0.0 0 0.0 85 137 10.2 16.7 216 147 48 112 208 236 23.7 27.3 (15.4 30.4 25.6 30.0 100 20.5 160 20.4 Tt Sixth Day % of Total 200 240 23.9 29.4 320 200 88 80 184 224 35.2 37.1 128. 3 21.7 22.6 28.5 184 37.8 184 23.6 Rest. Duty % of Total Extra Kork % of Total Misc. % of Total r of Base Base Hours 00 0.0 0.0 34^1 ) 178 41.6 21.8 36 53 4.3 6.5 00 0.0 0.0 0 0.0 0 0.0 00 0.0(LQ.. . 0 0.0 95 93 41 10.4 17.2 13.2 ui 12^6) 72 32.1 15^.0. _9-2 . 20.5 13P 56 7p> 21 33 56 14.9 10.4 22.8 5.7 4.1 7 1 40 8.3 837 817 13.7 11.6 6120 7040 910 10.3 539 7.7 311 5.3 368 813 5.2 11.5 1 8800 7040 | 5920 7040 7040 786 487 8.9 6.9 8800 7040 00 'U 0 0.0 166 21.3 ul8 15.5 781 11.1 7040 NOTES (1) Includes 263 hours of critical equipment maintenance. (2) Includes 40 hours of DIF absence. (3) Includes 24 hours of DIF absence, and 32 hours of absence for arbitration. (4) Includes 42 hours of repair work on large boiler. (.5) Includes 172 hours of coverage for two (2) employees on long terra absences. C6) Includes 64 hours of maintenance work required for collector bag change. (7) Includes 74 hours of maintenance work required for collector bag change. (8) Includes 40 hours due to Leave of Absence and 48 hours coverage for contract negotiations. TEN 3865