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June 27, 1968
cc Messrs. J. R. McClain
J. W. Molloy
Start-up Expense Budget for
R. D. Williams
Aroclor Expansion Project (CEA 1800)
R. S. Yates
R. M. Kountz
TO :
Mr. W. A. Kuhn (2) General Offices
Attached for your approval is the Start-up Expense Budget for the Aroclor Expansion Project including estimates of Preparation Expense and Operation Expense These estimates have been prepared" to conform to policy given' in Controller's Bulletin 12-06 and Organic Division Bulletin No. OA 5-1*
The totals for Preparation Expense and Operation Expense are summarized below.
Preparation Expense - 82,000
Operation Expense
- $33,000
Total Start-up Expense-$115,000
The total start-up Expense of $115,000 is approximately 7i:f of the estimated capital provided on CEA 1800 for this project. The basis for the timing of the start-up is Revision No. 5 of the Master Project Schedule dated 5/20/68.
The attached pages give a detailed break-down of expense esti mates by type and an estimate basis for major expense items.
Service Account Number 916*55 will be used to collect Preparation Expense charges. These charges will be closed out to the division start-up account (715*00) monthly.
Starting in July, a variance report comparing actual start-up expenses with budget will be sent to you monthly.
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/Approval
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H. F. Ray Mfg. Representative
TOWOLDMONOQ45031
Preparation Expense Budget AroClor Expansion (CEA 1800)
Jot No. 916.55
2
Budget Item
Factory Expense
Totals
Chemicals (505)
7,000
Utilities
5,150
Mfg. Wages (570)
5,790
Mfg. OH
(578)
810
Salaries (575) 16,4-50
Salaries OH (578) 2,950
Factory Supplies
(590)
8,000
Laboratory (610)
3,300
Clothing & Laundry
(614) 2,900
Safety Equipment
(613)
400
TSD (621) 3,000
Mech.Expens e(694) 20,000
Sub-Total -
75,750
3rd 4th 1st Phase I 2nd Phase
Qtr. Qtr. Qtr. June
Qtr. July
1967 1967 1968 1968
1968 1968
000
0
0 0 0 1000
0 0 0 100
000
15
600 900 1500 1200
100 150
250 200
0 1000
100
15 2200
350
0 1000
965 140 1200 200
0 00 0 00
0 0
0 1000 0 1000
000
0
0 100
000
0
0 100
0 0 500 500 500 1000
000
0
0 1000
Other Expense
Vendor Fees (715)\ 5,000
0
0
0
Meetings
(798)1 1,000
0
0
0
Office Supplies (5641 250
0
0
0
Sub-Total -
6,250
0 0 0
00 00 0 100
Phase I Phase II 3rd Phase II 4th
Aug.
Sept.
Qtr. Oct.
Qtr.
1968
1968
1968 1968
1968
0 0 0
0 1650
300
0 0 0 0 4200 650
0 1000
965 140 7050 1150
7000 3150 4725
655 4200
650
7000 3150
4725 655
5200 300
2000 1000
3000 1300
6000 2000
3300
0
2000 0
0
0
100 2800
2800
0 0 1000
100 1000 8000
200
200
2000
0
10000 10000
200 0 10000
1000 0 0
1000 500 100
2000
500 200
3000 500 50
3000 500
50
TOTAL -
82,000
00
TOWOLDMONOQ45032
Estimated Preparation Expense for
Aroclor Expansion (CEA 1800) Job No. 916.55
-3-
1. Chemicals
$7,000
Phase I
Since only storage tanks and associated equipment
are involved, it is anticipated no start-up cost for
chemicals will be incurred.
$0
Phase II
Process simulation on new process equipment using
Aroclor 1242 -10,O00G. @ $0.70/gal.
$7,000
2. Utilities
Phase I
-----------
6/68
Steam @ 15% Std. -
$"5)Oi5
Electricity @ 10% Std. - $100
$T5o5
7/68
$100 $"10M
$5,150
Phase II
. 10/68
"Steam" @ 40% Std. -
f^fjOO
Electricity @ 25% -
250
Purchased Water @ 50% Std. $400
$315$
3. Mfg. Wages
Phase I
No.
Repairman
"2"
Second Operator 5
Std. Operator
2
. Swingman
1
Rate
3T705 3.540
3-405 3.855
Vac. & Hoi. @ 12.824% -
Phase II Premium Operator Still Operator Second Operator Swingman Swingman
4 4 4 1 1
3.660 3.620 3-540
3.855 3.620
Vac. & Hoi. @ 12.824% -
Hours 24
180 48 12
Cost
90
635 165
45 ""936
130 $1065
240 880 480 (1) 1735
48 170 60 230 320 (1) 1160
PTT75 550
$4725"
$5,790
(1) New classifications. Will receive training on straight time. All others are regular department personnel and will be trained on overtime.
4. Mfg. Wages O.H. (13-993%)
'
$810
0014285
TOWOLDMONOQ45033
5. Salaries (Training, Start-up Planning, Preparation for Start-up)
' Phase I a. Mfg. Representative $300/mo. - 8/67 thru 12/67, $500/mo. 1/68 thru 8/68 -
b. Production Supervisor $250/mo. 6/68 thru 8/68
c. Production Foreman $450/mo. 6/68 thru 7/68
-4$19,450
$5,500 $750 $900
$7,150
Phase II a. Mfg. Representative $500/mo. 9/68 thru 10/68
$1,000
b. Start-up Foreman
$900/mo. 8/68 thru 10/68
$2,700
c. Production Supervisor $250/mo. 9/68 thru 10/68
$500
d. Shift Supervision
3 men$850/mo.
9/68 thru 10/68
$5,100 ~'-$973C5-
6. Salaries OH (17-75$)
7. Factory Supplies a) Housekeeping Equipment b) Safety Signs c) Equipment Tags d1 Safety Equipment ej Laboratory Equipment f) Miscellaneous Start-up Supplies
$2,950 $8,000
8. Laboratory a) Develop routine methods for electrical property
measurement based on Organic Research Work.
$3,300
b) Analyst Training
9. Clothing & Laundry (5$ of Wages)
$2,900
10. Safety Equipment
11. Technical Services a) Training Assistance b) Materials Engineer
c) IFO Review
$400 $3,000
,'
001^a6
TOWOLDMONOQ45034
12. Mechanical Expense
"Phase 1 - $" 2,000 Phase II - $18,000
$F0,(JKJ
-5-
$20,000 '
Includes: "a) Equipment, Instrument and Electrical checkout prior
to start-up (beyond nominal service provided by Engineering).
b) Alterations to equipment prior to and during process simulation (water batching).
c) Maintenance coverage during start-up.
13. Vendor Fees
$5,000
14. Meetings
$1,000
15. Office Supplies -$307ino. - "6/8 thru 10/68
$250
Total
$82,000
OOl'iZB7
TOWOLDMONOQ45035
-6-
Operation Expense Budget Aroclor Expansion
(Over-and-Above Standard)
Budget Items
Totals
Utilities Salaries Salaries OH Factory Supplies Laboratory Mechanical Expense
3,000 5,100
900 2,000 2,000 20,000
TOTAL -
33,000
Phase I Phase I 3rd Qtr. Aug.'68 Sept.'68 '68
1000 0 0 0 0 0
1000 0 0 0 0
2000
2000 0 0 0 0
2000
Phase I Phase II Phase II 4th Qtr. Oct.'68 Nov.168 Dec. 168 1968
1000 0 0 0 0 0
0 2,550
450 1,000 1,000 9,000
0 2,550
450 1,000 1,000 9,000
0 5,100
900 2,000 2,000 18,000
-
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TOWOLDMONOQ45036
-7-
Estimated Operation Expense for
Aroclor Expansion (CEA 1800) (Over-and-Above Standard)
Following is the basis for estimating Operation Expense for the Aroclor Expansion Project. These costs are for over and above standard costs for chemical operation. All other costs were assumed at standard.
Utilities (Tank farm on line prior to Mfg. Plant)
Ph&s0 X Steam @ 15% Std. - 900 Elec. @ 10% Std. - 100 1000/mo. 8/68, 9/68,
10/68
$3,000
Salaries (Shift supervision on start-up) Phase XI Shift Supervision 3 men @ $850/mo. 11/68 & 12/68
Salaries OH (17.750%)
$5,100 $900
Factory Supplies $1000/mo. over-and-above standard 11/68 & 12/68
$2,000
Laboratory flOOO/mo. over-and-above standard 11/68 & 12/68
$2,000
Mechanical Expense Phase I -
Phase XI -
$2,000 $18,000 $20,O0O
$20,000
Includes:
All mechanical expense required for minor modifications and correction of facilities to obtain smooth and trouble free operation
at design rate, quality and cost.
TOTAL -
001^289
TOWOLDMONOQ45037