Document nk1N3adqL7YNqgVzzyrq39QG2
*
*'"GEORGIA-PACIFIC CORPORATION
Interdepartmental Cownuntcation
DATE:
August 2, 1966
TO: Mr. G. B. Wilson
LOCATION:
Paoli
FROM:
P. J. Curry
LOCATION:
Acme
SUBJECT: CC:
^..MffilMBgg.
Mr. E. B. Hollingsworth - Paoll Mr. T. W. Richards - Paoli
pr,'ue
^
Complying with your request that you be kept up to date on the
progress pf the 1966 cost reduction prograta, ' erne submits the following report.
Commitment
6 Mox t Estimate Javingg.
1. Board Perfects up to 96X
We are falling short of our goal;
perfects 95.941 on 7/1/66.
7,932.00
2. (a) Board weight reduction With normal volume we shall surpass our 12 month estimate.
18,255.00
6 month *^2*J&2*JL
$ 843.00 "
15,242.00 /
(b) lOX Reduction of Overtime Poor business conditions have inflated this figure.
3,948.00
10,460.97 "
3. (a) Installation of Bntoleter Demand for this product has been very low.
2,214.00 ^
369.40 %
(b) Elimination of 2 pulp men
3 750.00
Revision of formula has prevented
this, we see no way> of obtaining
this goal in 1966.
(c) Veraiculite bulk handling New Flrestop formula has caused a revision of our plans.
<
(d) Reduction of man on Flrestop runs Started on July 26, 1966.
1.250.00 600.00
<e> Larger mixers and elevators in Joint System
2,000.00
Improved production methods caused
us to hold up cm this expenditure.
(f) Paper hauling with G-P Trucks
25,000.00
This commitment was improperly
classified. It should reads
Hauling of all products with G-P Trucks.
26,596.41
SGP 0002805
6 Month
4. Joint System Department
() Reduce freight rate
$
Ho action was taken due to
inability to find local vendors.
315.00
<b) Increase production by 9% High volume and an increase of over 9% accounts for this figure.
519.00
<c> Peck all textures in department Packing still beln done in packing department.
198.00
C neral Plant Yard
(') Eliminate one yard truck & driver and minimise janitor requirements.
Program started In May.
5,806.00
Mill
(a) Bulk rock storage bins
Item baa been removed from our
Capital Expense Budget.
2,500.00
Quarry
() Seduce prill usage Commitment will not be attained, however laat 6 months will show an Improvement.
B ard Warehouse
293.00
s*
(a) Fiber corner protectors Reduced shipments causing us to run below projected estimate.
750.00
(b) Savings on Brandon Tie Cars
540.00
Savings not possible due to type
and condition of equipment furnished.
(c) Crew utilisation Low volume has prevented full expected savings.
4,347.00
Office
(a) Reduce Overtime
240.00
(b) Reduce phone bill
480.00
TvIX charges were not considered when
commitment was taken.
6 Month Gain or (Loss)
3,416.00
376.00
(161.00) 461.CO
3,150.00 261.00
(1,436.00)
SGP 0002806
GojSJiitwgSt
10. Board Manufacturing
(a) Reduce unloading labor and pulpcoats
(b) Fuel
(c) Electric
(d) Reduce Talc All Items under review.
6 Month *&&isss&J.ssis&
$ 2,172.00 501.00 802.00 100.00
-3
6 Month g*JLEJ3sSi
$ (60.00) 135.00
(1,322.00)
(2.00)
11. Malnt lance
(a) Reduce repair labor & material 5%.
4,066.00
Projects planned for second half of
1966 will offset some of the gain shown.
(b) Reduce maintenance delays 5% 5% reductions for the year Is still
attainable.
158.00
12. Packing Department
(a) Reduce manpower requirements
409.00
(b) Efficient use of electric power Mo action taken as yet.
43.00
13. Quality Department
s*
(a) convert to Krystallex Krystallex proved unsatisfactory.
1,050.00
(b) Reduce starch usage Higher reduction than estimated was possible.
1,350.00
(c) Reduction of complaint cost
650.00
A new quality program will reverse the
first 6 month trend, however
commitment cannot be attained.
6 MONTHS TOTAL PROPOSED SAVINGS PROGRAM
$ 92,238.00
11,044.32 49.00
2,476.00 (6,589.00)
Actual $ 65,310.10
SGP 0002807
aaaBiRfia.C Item* which should be deleted from program due to formula changes and budget changes 3. (b) Remove 2 pulp men 3. (c) Vermiculite bulk handling 3. (e) Larger mixers In Joint System 6. (a) Bulk rock storage bins 8. (b) Saving on Brandon Tie Cars 10. (a) Reduce pulp costs 13. (a) Convert to Krystallex
6 Month Estimated Savings
$ (13,262.00)
4
6 Month gain or (Loss)
6 MONTHS TOTAL WORKING ITEMS % Realized: 81 92%.
$ 70,976.00
PJClom
P. J. C.
SGP 0002808