Document pmqL1ZkMrgZDG10jooZr4XNE

Interoffice Communication To R. D. Gamblin - Houston From J. A. DeBernardi ate January 27, 1982 Subject 1981 VCM Plant Objectives COnJCO Attached you will find a summary of the results obtained in 1981 related to the accomplishment of the subject objectives. 0. A. DeBernardi br attachment CCR 0000674X3 parTT quant i i .___ { goal? ftftML: J. A. LleBernardi A SAFETY Results 1980 Objective 1981 Results 1981 J. Have no lost-time injuries in 1981. 2. Limit medical cases to three in 1981 assuming one plant turnaround during the year. 0 4 0 No lost time Injuries in 1981. 3 Five medical cases occurred in 1981. 3. Limit total injuries during plant turnaround period to four assuming one plant turnaround in 1981. Durinq normal operation limit total injuries to 16. Normal Operations: Permanent Casual 4 Temporary Tu rna round: Pe r:na nen t Casual & Temporary 4. Deregulate the one remaining regulated area in the plant by December, 1981. 5. Fill the Safety Director position by March, 1981. 16 12 7 2 41 21 33 "23 One regulated Remaining regulated Deregulation of the remaining regulated area in the plant (T/C loading rack) occurred in area deregulated area deregulated by December, 1981. )ecember, 1981. March, 1981 Safety Director, position filled June 1, 1981. 6. Complete slide/tape show for revised respiratory protection program by June, 1981. ENERGY June, 1981 This project was completed in December, 1981. 1. Operate at an energy usaage rate during 1981 based on 609 MM lbs. of VCM production and one plant turnaround not to exceed 4,430 BTU/lb. of VCM production. 4,580.9 BTU/4VCM 4,430 BTU/4VCM 10.3% reduction 13.6% reduction from 1972 from 1972 Energy usage was 4,965 BTU/lb. of VCM production representing a 3.09% reduction from 1972 base year. Results in this area were severly impacted by production cuts caused by poor market conditions. Basis: Energy consumptions based on the adjusted CMA calculation basis. 2. Establish use of light ends as monitor flame in the on-line vent gas incinerator on a continuous basis by June, 1981. Light ends used on test basis. Hot economical for use continu ously `till muriatic acid sales established June, 1981 3, Define energy savings projects with potential energy savings totaling 200 MMM BTU/yr. Definition to in clude preliminary process design and cost estimate, and economic calculation. Intermittent usage of light-ends during 27% muriatic acid production runs accomplished. Continues to be uneconomical to use the material as a monitor flame if acid production can not be sold. Acid quality related to color prevents sale of all acid production to Reagent at this time. Light-ends will be used to produce quantity of 27% acid required by Reagent. 704MMM BTU/yr. energy savings projects defined in 1981. 4. Implement a formal evaluation system for energy sav ings projects installed in the process, as well as a monitoring system to assure long term effectiveness of the projects. 5. Develop two economically attractive energy reduction projects. Include one project in the 1982 Capital Budget. Two In 1981 Capital Budget One In 1982 Capital Budget Evaluation and monitoring system In place and In use in 1981. Two economically attractive energy projects remained in 1982 Capital Budget following Houston review. CCR 000067414 part A. ' qiiANi iiArivi r.oA'i s" Results 1980 Obj ective 1981 Results 1981 PRODUCTJON COSTS 1. Produce 609 MM lbs. of VCM as budgeted provided there are no external restrictions related to this rate (market conditions, raw material supply, natural gas supply). 2. Meet budgeted variable cost efficiencies. (Price variances are excluded.) 3. Meet budgeted maintenance costs (one turnaround in 1980). 4. Have recycle EDC by-pass project on line and successfully operating by March, 1981. 5. Resolve problems related to muriatic acid sales specifications such that acid will be saleable by June, 1981. 6. Complete the 1981 plant turnaround on schedule and within budget. 608.2MM lbs. VCM ($222.2M) Unfavorable ($567.8M) Unfavorable Acid does not meet specifica tions T/A Time - 22 days T/A Cost $994.1M 609 FW lbs. VCM As budgeted As budgeted March, 1981 June, 1981 r/A Time - 19 Days T/A Cost - $1,124M VCM production for 1981 totaled 465.6MM lbs. Market conditions severely limited production potential for the year accounting for essentially all of the production shortfall. Efficiency variance for 1981 was unfavorable at $1.453M. This var. is composed of FOC/VCM negative $901M, Incinerator negative $552M. Major contributors to the negative var. In EDC/VCLt area where processing supplies & utilities var. attributable to reduced prod, rates. Major negative contribute in the Incin. area was utilities caused by inability to produce sales grade acid for Reagent Chem. Maint. cost variance for 1981 was favorable at $212.3M. Profitability Improvement program in 1981 i the major contributor to this var. A negative var. in Maint. Materials detracted from maximum potential savings for the year. Project was in full operation in April, 1981. Energy audit of the project indicates it meets or exceeds economics presented for project approval. Reached agreement on 27% acid specs, with Reagent & began producing & shipping acid in 3rd c er. Project using carbon-bed to bring acid to sales grade quality was developed but has marginal ^onom- ics related to risks. Carbon-bed project Included In 1982 Capital Budget. Economics will be re evaluated before submitting for approval. T/A schedule revised to 26 days due to expansion work and VCM market conditions. T/A completed in 22 days. T/A AFE'd for $963M. T/A cost was $229.9M in excess of AFE amount. Major contributor to the overrun was the maintenance material account. 7. Develop two economically attractive cost savings project. At least one project to be Included in the 1982 Capital Budget. Three in 1901 Capital Budget. One project remained in the 1962 Capital Budget following Houston review. PERSONNEL 1. Maintain a non-union field and office workforce at the VCM Plant. Non-represented Maintain non-uni Mon-union status maintained In 1981. Mo organizational attempts since Septenber, 1974. status maintained workforce 2. Maintain a minority hiring rate that assures minority representation in the field workforce that is equal to or greater than availability statistics (1981 avail, stats. 20.52). 3. Maintain a female hiring rate of 25% into the field workforce. Minority re presentation at 22.9% Female hiring rate 25% 20.5% Min. Female hiring rate of 25% Minority representation in field workforce at end of 1981 was 22.8%. No permanent females were hired in 1981. One "other" category employee was hired in 1981 to fill a opening caused by resignation. At year-end have one female on temporary payroll leading to permanent employment to fill open position In Operations Department. 4. Recruit three Process Engineers into the plant organization in 1981 (1 female, 2 other) Minority - 1 Other - 1 Female - 1 Other - 2 Five process engineers recruited In 1981, Four "other", one minority (female). 5. Establish and impliment a supervisor candidate identification program by June, 1981 June, 1981 Program was not completed in 1981. 6. Fill the approved plant Inspector position by March, 1981. March, 1981 Inspector position filled April, 1981. 7. Provide supervisory training in non-union status maintenance to two supervisors. Two supervisors attended train ing Two supervisors to training :ourse One supervisor received non-union maintenance training In 1981. CCR 000067415 NAME J. A. DeUernardi part' a;,^T[uAniitat1vi goai $_ Results 1980 ENVIRONMENTAL CONTROL 1. Operate the plant's secondary system within effluent concentration parameters (excluding system hy-passes caused by heavy rains). ?. llpi-rate plant EPA-VCM emission control equipment with i.oinpl iditce factor s as follows: Four violation notices filed BUDc - 2 pH - 1 TSS - 1 a) Incineration System Oxy Vent Ship loading Carbon Bods Steam Stripper System Vent Blower System b) No plant shutdowns are caused by incinerator system failures. 3. Complete new incinerator flame arrestor system and have on line by expiration of existing State vent variance on Oirect Chlorination reactor vent 99.621 99.15% 100.02 99.662 99.642 No plant shut downs - 4. Obtain the new flPDES water permit for the expanded VCM Plant by December, 1981 MISCELLANEOUS - 1. Complete asset register review of EDC/VCM section of plant by December, 1981. - Objective 1981 Results 1981 No non-compliance Five non-compliance notices issued to EPA in 1981. All related to non-compliance with reports filed. minimum pH level of effluent water. 99.82 99.52 100.02 99.82 100.02 No plant shut downs April, 1981 99.822 99.26* 100.002 99.95* 100.002 No incinerator failures caused a plant shutdown In 1981. Flame arrestor systems were in operation during the 1st quarter of 1981 prior to expiration of variance Issued by the State for the Direct Chlorination reactor vent stream. December, 1981 All required information and paper work was submitted to EPA on time. An extension of the plant's present permit was granted. Governmental and regulatory red-tape prevented attainment of a new permit in 1961. December, 1981 EDC/VCM section asset register review completed in 1981. Approximately $186Mof obsolete equipment will be written off the asset register as a result of the review. no 30 O o o o O' -J -p' ho- PART BY STRETCH EffAU' Results 1900 INI KGY 1. [)ev<`lop two economically attractive energy minetinri projects. Include both projects in I'/fll Capitol llinlget. Two in l Wll Capital Budget 2. Define energy sav ingc prnjects with potential energy savings totaling 400 MMM BTU/yr. Definition to In clude preliminary process design and estimate and economic calculation. Objective 1981 Two in 1902 Capital Budget NAME 0. A. Dellernardl Results 1981 Two projects remained in the 1902 Capital Budget following Houston review. 704MMM BTU/yr. energy savings projects defined in 1981. PRODUfJ ION AND COSTS 1. Produce 650 MM lbs. of VCM in 1981 2. Attain a favorable maintenance cost variance of I300M 3. Develop two economically attractive cost savings projects. Include both projects in 1981 Capital Budget. 608.2 MM lbs. VCM {$567.8M) Unfavorable Three in 1931 Capital Budget 650 MM lbs. VCM $300M Favorable Two in 1982 Capital Budget VCM production for 1981 totaled 465.6MM lbs. Market conditions severely limited production potential for the year. Maintenance cost variance for 1981 was favorable at $212.3M. One project remained in the 1982 Capital Budget following Houston review. O o 30 O O O o O' 4^ M -J part c." non-quantitative goal? 1. Initiate program through Ponca City R&D to develop possible use of transfer line exchanger system on outlet of VCM cracking furnaces. 2. Review suggestions made by Energy Audit Group and outline program to inipliment appropriate programs. 3. Review recordkeeping requirements of Federal and State environ mental and OSHA laws and purge files of all materials not required to be held by law. 4. Evaluate need and cost of changeover of plant warehouse accounting system to inventory system. If justified, impliment program to accomplish the changeover. 5. Provide plant input and coordination related to design of grass roots PVC plant at Lake Charles location. 6. Provide one full time plant member to the plant expansion project team. Provide plant input and coordination of the project in a timely manner. NAME J. A. OeBernardi Results 1981 Initial contact and discussions with R&D were made. No serious development activities related to the project occurred during the year. Suggestions and recoiunendations were reviewed and discussed. Those with merit and minimum risk were submitted in the plant's preliminary 1982 Capital Budget. Progress made related to OSHA records. Purging of files of unnecessary materials began in late 1981. No action taken on Federal and State environmental records during the year. Minor evaluation work done in 1981. Basis of justification not developed durir, year. Project for change over was not initiated. Two plant employees served on project team during 1981. Two plant employees served on project team during 1981. o o o o o o O' a>