Document gOdex5LOdonZEZBkn5YxevB9

GERTAIH-TSSB PRODUCTS CORPORATION Arcfeos'3 DATE .*1011 C? Mi*. 0. P. Orisrjo itNC- TOURS 22/12/$$ January $, 19$6 FROM Pryor OFFICE SUBJECT AGENDA 1956 MANAGERS MEETING DICTATED IS 37TTl!ari - g cz i Hr. ?. E. Fischer, V.P. ~ Ardmore a*. H, -J. ZqIjhs - Acasr *,! ;-s.,p Mr. E, F. Dsbo - Afcrca Me** E* VI. Brcrn - Blue Rapids, Kansas Mr. %Toa Read ~ Fort Dcdgs Mr. A. II, TecElshof ~ Grand Rapids Mr. Fi. L. Film - Signrd Mr* !!, M. Powers - Akroa Mr. ?. V.r. Codwise - Thorold Mr. 3. G, Johnson ~ Faell Eng* lor. M. G. Vail - Paoli Mr. H. C, Paokott - Fort Dodgo Hi'. G. A. Hcggatt - Paoli Hr. !; ? Fink - Ardmore Kr. 0. C- Shuttiei-rorth - Paoli Lab* Attached hereto is our report on the Topic which Has assigned, vdih a copy to each of the addressed in accordance with yon? instructions. They are being sent in "Confidential51 enrolopss* SGP 0021459 CONPIDSHTIAL GIPSIH PLANT MAffiSS KB3TIIH} SALT LME Cm, UTAH jmmz 16 to 19 1S$6 TOPIC #21 PAPER CCS? REDUCTIONS Pryor> Oki&hosa SGP 0021460 The; e;;..bidt-icn of sort- reduceion c.^o^plish'i^nts in the maaufsuture sun Baurd Papers is complicated by the varieties of rctr mia-rials, varying coots, chaining ranges of grades of papers produced, and tfoa thsr factors affecting conversion costs* Oversimplification does not t the eomplets story, yet `too much detail tends to corifaso it,, tie udll t to avoid both ext.ro&ss* In aost cases, periods of 11 months have been used to base estimated figuren. In sgsis instances, averages of averages have been russd, but non tho units sararc.rpd rsrc esssntislly ueifom quantities, such as average / costs of Materials purchased in fairly regular quantities * Rounded s hs.v-3 boon used in inntar. ;os vbors the method of calculation did uot e greater accuracy, ncr p-p greeter accuracy of material significances, ijc, r-..->-4?.v r^. ob .1T Up.Ti'-''.t'b.iTrh^a'.r-J.' li?: ?1a ^ 'U~- / ..-.iv ^.i`b3 V I'lrf d, * rf I j u V,,-.C V-rf' Vw'iV ` -r i. . -W >. <.' k.X cast ertovirlS;. rari:-,,:there obtained in nolens cf nahorlalir holding deer cunts cl price lucre?sen of rateriaie. and through subprihuilou of Ivor: rtoriol;:;. Ret carvings. he;, aval*, ccsra not realined, for price i.rarcr.;:c-i: arc requirement inersesf..". nar then offset the gross savings effected., < *p ir: - ,*< j- ( r- Tf^'- >#v*? V'- *' 1-`'- s-* --V' /.-. >,.*% 1 D<!. ,~~.r's 1 CwC* ..... ` .t vX ^ ^ .'wi , ..... 1 V,,; v---.'. </%V wy m>.o.*.* CyilBiCi: ?r /? 9 X BIACK S.'E.YF' j ./ SGP 0021461 Significant rr,-.r niuicricsls at IS'55 prices ^presented changes fraa Xfpb delivered costs in the following approj&E&te niRoimts: Rar Ifeterlal Mixed Peps? IIO , 1 Old Corrugated MsT.'j D L Craft, thiio i^rsbicrl: Sulphite Fulp Dixie Cap Cuttings Ground-rood Pulp Resin Sice liquid A1ub Starch 1955 Difference in Cost /i*. 7,600 19,000 29,000 3,000 29,000 2,000 2,700 7,600 Inoraa^o a n n si n lil,0C0-- Easr&asa 1,500 1,200 ti ikt Inarcace: Actual Furaiuh Increase: 1S55 Furnish Savings: 3k,000 1*6,5co 37,500 I>3 537,500 savings is calj thooritical, for it-represents the additional aiicsst ever actual increase t!ust rouid have be-on expended for 1955 furnish if no savings neasvrcs wore realised< the r.ore sigalficant its that contributed to grsss fsrrd.sh savings r-rv.; Slcalitys-^s'sd to reduce Top Linar aonsneptian for Ivory up*ironi:.:eiv3.y 305, started ths 2nd qixirbor of 1335 Increased us?, of loe-er cast papers, oarticiilurly Mixed Paper in Lath and Grayback, Ccc.:cDtitiTe cries c; ret clued far S*s:in Slav tlxcrgh Crosby Chart cal Company, The obtaining of ? lined Paper at under the nsrhet prices, the latts part of 1555* Phis, of ecures, soiud not be reflected in savings st if the core favorable price had sot been obtained < In addVirion to raterial piece incroassc. ether sigrDJtieent farters cox,; vtiuead to press fvrvish ever eased costs as; felterx; SGP 0021462 2, Increased production of Light Weight Fact Papers, which increases cost through reduction of percentage of lowest cost Filler furnish, (2) MACHINING Significant savings were effected through increased production and production rates, substantially reduced costs for repair labor and materials, and reduction of steel and felt costs. Overhead cost was also reduced, due to production increases, with an assist from proraticn of some of these costs tc Felt Mill operationc Met savings were realized in spits of v;ago increases of 3% plus in July of ipfisund 5% plus in July of 1955, increased cost of services and supplies, and inersars stasn and electric power costs., Direct and overhead costs, per ton by grades, for 195U and 1955, were approximate r.s follows: ivori GRATBACK LATH BLACK dHFATHING 1 otfl. 1955 Direct 0/Kd 19,99 10,93 17.99 9.k3 Direct O/L d 19.61 10.75 18,13 o , fI Direct Q/Hd 20 M llalf? 18.87 9.95 If-roct 2/m 18.89 10,69 17.38 5,30 fet I"eercaso 2.00 i .>5o 1955 2> Dccreaa 2 9,2 CO 21,900 1,58 \,,2l 18,780 15,350 1,97 1,513, 1?,6U0 12,230 'X. 36k 1 ^ iS i '55 Coirncrsion costs, including overhead, for .1955 production, represented a savings cf .1113,800 over 1955.. The more significant items that contributed to these savings were (approximates)? rrodvetion - Tons Production - Tons/Oay I9$h 30,500 98,9 1955 35,500 100 ;2 1955 & Savings Per- Ton _Cost:> .Diroat Labor Repair Labor Repair ihiorioi Orerlrad i 7cl . 6-00 1.20 1X5 11,00 ox.3 Fw CO O 5 -,5o c.75 0,70 1X0 9,60 0,32 17X75 15X75 12,1X5 31X50 U?,?00 5X15 Cl3na Sf'Vrngn Ls 1ma SGP 0021463 0t.;.:'v'.it;o oervtec r-.ad SuppXi33 Jv^vi 0 SO Qe8? 2 sl;.0 2,50 1955 0.95 1 *2,0 2*?0 2*96 ' ' C-roa;.' increase 1955 S Incro&so 1,77$ 8*165 10,650 2,130 023*22 -''V-'-.-M A~tr. Hr* *! r* o 4-f'Vis'* 1 Q 1 19$$ usra as fQ.Hcr.jsj 19^:. Cl <OA 7<v 19$$ ,/4&Ss. **' i?,?9o amounted to a savings of 7,100 for 19i Reduction :3a::v- fcuter loading through tetter operator' experience* . .* J`*i ".v*it as well os Psoor. or-c-iuoln a faster ps.cs {H'Oc-v.Ji Pnocr Costs from f t*vcr areduction* Cos-; per ten cf paper icr 195 i. i c>rcf *Og3thCi* with 5 Of d i a vt5 > \m..Tf '?5 #ia r,- a I7tl;f U-\ .1 te BlfCT PH:-/3:Ii i'o?.''.c:rs: COST ?SR 70U .59 65,35 65 ..06 6525 96,69 66. SI 61.52 .'5 < -? /<> ,01 PUO'5 O '*"> * 8" V'f 5. v.'"0-` * ;:v'nasc in ec; V "V !> ' - '''in -'> produced at fe^ro. SGP 0021464 Had Fryer papsr 'co;):i purc-hee^d FOB Pkyor, at Central Fibre prices, it would have cost a premium crver Pryor costs of 2 1,16C,0C0 (C) Ways and means of obtaining further cost reductions: 1. Increase production This may be achieved economically, we believe, on a limited basis, by adding dryers, a dryer sheet carrier, vat exhaust system, vat approaches, and increased Jordan capacity, for upwards of 10 tens par day. Neither the estimated cost nor savings that could be derived arc available at this tlsrs * 2* Pusclaim as usable paper Grayback Side Roll trim. This is under investigation, and although it is not premising, if a Wab Welder could produce usable paper, a net appreciation in value of product upwards of d35>OCQ annually might be realized, 3. Develop an acceptable "Lath" top Grayback, which could bo Boar&**plsnt treated for scuff resistance.. Elimination of Top Liner treatments, including pulper chemicals, could amount to *>5>0,CG0 annually. h* Continue the search for lower cost materials, such as groundwood shavings for 1lewsblanks, Dixie Cups for sulphite, etc. Continue to obtain information from Central Fibre experiences with Hr.sd Paper through a Befibraicr, to determine if furnish savings can be mads with this equipment a 5. Be alert to developments of equipment, materials, and retheds, which night improve product, or reduce cost* ?. Other areas of expected Improvement involve reduced costs for ubi'J.tisc, and reduction of water usage and shrinkage losses- Hart SGP 0021465