Document ykXv9p4GvzaGexKgXNdB6JJXE

c BULLETIN P-50 MONSANTO CHEMICAL COMPANY Texas City, Texas C. L. Gilmore Safety December, 1957 REQUESTS FOR CAPITAL APPROVALS Capital requests can be initiated by any supervisor at Texas City if supported by the management level equivalent to manufacturing superintendent, plant engineer, personnel director, technical service manager, production co-ordinator, engineer ing manager, research section leader or their respective superiors. The procedure to be used to obtain capital approval of a request follows: 1) Capital Approvals under $25,000 The justification basis and form are as described in Texas City Bulletin No. P-21, Revision 4, dated August 1, 1956. Also refer to Bulletin No. P-5. 2) Capital Approvals - $25, Q00 to $50,000 Justification will be prepared by the initiating department following a simplified variation of the format used for major capital requests as outlined in the Management Guide.. A sample form of the simplified format containing pertinent comments is attached (See Exhibit I). Engineering Planning will supply guidance on investment analysis as requested; or, if requested, Engineering Planning will carry out the investment analysis. The completed request will be submitted, to Engineering Planning for review and approval in the investment analysis area only prior to its submission to the General Managers office. - 3) Capital Approvals - $50,000 to $250, 000 The requests for capital additions falling in'this capital range will be prepared by the Engineering Planning Group with the aid of the initiating party. Three months notice prior to the date the actual request is submitted will be required by Engineering Planning to be sure that the project is properly forecast so Division and St. Louis Management are alerted. A sample form for giving notice to Engineering Planning is attached as Exhibit II. 4) Capital Additions - $250, 000 and up The requests will be prepared by Engineering Planning with the help of the initiating party. A minimum of 6 months prior to the date the actual request is submitted will be required by Engineering Planning to forecast the project so Division and St. Louis Management are aware of our cash requirements. Exhibit III lists the information required by Engineering Planning for the forecast. SC 005218 V LAM006428 Exhibit I Page ^ of 5 Texas City, Texas Date: REQTTipsT FOR PROJECT AUTHORITY FOR expehditure amd/or RETIKEMEHT Title: Attachments: Authority for Expenditure, Justification, Estimate, Engineering Work Order, Drawings, Sketches, Etc. Discussion of Estimate and Proposed Method of Handling Construction: Actual costs may be +____ # or -____ # of the amount requested. Checked by___ Signed by_ Process Engineering is approximately ____ $ Complete. Date Mechanical Engineering is approximately ____ 56 Complete. Date Drafting is approximately ____ 56 Complete. Date Signed By Signed By Signed By Department Signed Date Divisional Engineering Department The facilities described in the attached papers will accomplish what is desired by the Initiating Department and this is the best alternate of those investigated. Plant Engineering Department The money provided by this estimate is sufficient to do the work as described and the proposed method of handling the construction is satisfactory. Initiating Department The attached papers describe the scope of the proposed facilities requested and this is the best alternate of those investi gated. The expenditure of $ for this job is hereby requested. - Personnel signing above agree that if increases or changes in scope, procedure, methods of materials occur, the work shall be stopped immediately and held in abeyance until a reestimate of the capital costs can be made. SC 005219 LAM006429 U A236 Monsanto Chemical Company PROJECT AUTHORITY FOR EXPENDITURE AND/OR RETIREMENT pa< plant omrm.(THIS FORM TO B5 USE) FOR AUTHORITIES REQUIRING GBUBtAL MANAGER AND lOWSt LEVEL OF APPROVAL) BUDGET ITEM NO. C5STS "1 ENG. JOB NO. AUTHORITY NO. DESCRIPTION, REASON AND JUSTIFICATION FOR WORK _______ 1 PREPARED BY REVIEWED BY GENERAL MGS. DATE WOtt. MGR, APPROVALS DATE PLANT MGR. DATE OTHER CATE ITEM DESCRIPTION EQUIPMENT TRANS. NEW CONTE. MAT. & 5TORES DIRECT SHOP WORK SUPP. O'HEAD LABOR O'HEAD TOTAL C INFORMATION FOR RETIREMENTS SUMMARY OF ITEMS TO BE RETIRED i. msmuD cost INFORMATION FOR EXPENDITURES CLASSIFICATION OF AMOUNT AUTHORIZED PROJECT SUMMARY 8L CAPITAL EXPENDITURE 14. PROJECT TOTAL (ORIG OR REV.) 2. VALUE NOT RETIRED S. REPAIR OR OTHER EXPENSE 3. VALUE TO BE RETIRED 0-2) 4. ACCRUED DEPRECIATION ON VALUE TO BE RETIRED IQ. LEASEHOLD IMPROVEMENTS IT. TRANSFERRED EQUIPMENT &! CIATED VALUE \ (W) 6. AMT. EXPECTED ROM SALE, TRADE-IN, ETC. 12. DISMANTLING EXPENSE IX TOTAL AMT. AUTHORIZED 7. RETIREMENT LOSS (54) 8 + 9 + 10 + II + 12 I3& 19 8 s lva FOR CAPITAL APPROVAL USE FORM A-823-1 TO DETAIL RETIREMENTS 1& LESS PREVIOUSLY AUTH. IX PROJECT TOTAL--THIS REQ 04.15) 17. LESS THANSFERRED EQUIP. IX NET CASH REQUIRE) 06-17) 19. AMOUNT AUTHORIZED = (16) SC 005220 Exhibit I Page 3 of 5 APPLICABLE ONLY FOR REQUESTS INVOLVING NEW FIXED CAPITAL IN EXCESS OF $25,000 BUT LESS THAN $50,000_________________ _________ MONSANTO CHEMICAL COMPANY Plastics Division TO: R. K. Mueller, General Manager, Plastics Division Date FOR: (Descriptive Title) Here should be inserted an abbreviated description of the project including, if pertinent, increase in plant capacity ; new rated production capacity of plant, reduction in oper ating costs, 'improvement in working conditions, improve ment in safety of operations. Only the. main reason for the request should be stressed. The descriptive matter should be limited to 2 or 3 sentences. APPROPRIATION REQUESTED: SC 005221 $ LAM006431 Exhibit I Page 4 of 5 TOTAL CAFITAL TO BE EMPLOYED IN THIS PROJECT: New Property New Working Capital $________ $________ Total New Investment $________ EXPENSES: (if any) Here briefly insert any expense items associated with the cost of demolition. Reference should be made to the attached Project Authority for Expenditure form detailing salvage and retirement allowance occasioned by the project. NEW NET INCOME OR SAVINGS: Before Taxes: $____________________ After Taxes: $ These should be based on the most probable annual level of operation of the project. I. REASONS FOR RECOMMENDATION: A. Profitability Under profitability, if applicable, include a paragraph citing the percent return that new earnings or savings amount to on new capital required. Another paragraph should be included indicating in what year the savings are calculated and at what rate of operation of the plant. A statement of whether these savings will apply in future years should be included. B. Discussion Here should be included a statement of the problem and a description of the recommended solution. If the project does not show new earnings or savings, discussion of the reasons for recommending the expenditure of the capital should be included in this portion of the request. Sufficient information should be provided so that the reader, without being expertly familiar with this parti cular area of the plant, can understand the effect of the expenditure on the particular operating area, whether this expenditure will lead to future commit ments, what chance of success the recommended action has, and what alternates have been considered. This section of the request should be about half a page long and consist of two or three informative paragraphs. SC 005222 LAM006432 Exhibit I Page 5 of j> n. DISCUSSION OF CAPITAL ESTIMATES A. Scope Briefly describe what major items of equipment are included in the requested capital and any unusual conditions of temperature, pressure or corrosion that are encountered. B. Basis of Capital Estimate Describe the basis of the new fixed capital requirements. State whether capital requested is based on preliminary equipment, quotations and our estimated costs of installation, or on firm competitive bids for the installed equipment. C. Status of Project Describe the status of Research and Engineering work, the equipment delivery time, the anticipated completion date. in. PERSONNEL An estimate should be provided of the number and type of employees that will be added as a result of this project. If none are added, this section can be eliminated. IV. SCHEDULES Material presented graphically, pertinent to the expenditure and included to clarify an important point should be assigned a Schedule Number and attached to the request. SC 005223 Submitted by: LAM006433 Exhibit EL Page _1 of _I APPLICABLE ONLY TO FORECASTS INVOLVING NEW FIXED CAPITAL IN EXCESS OF $50, 000 BUT LESS THAN $250,000_________________________ MONSANTO CHEMICAL COMPANY Plastics Division Date_______________ TO: W. H. Stanton, Manager of Engineering Planning, Texas FOR: (Insert descriptive title) A summary of the more important statistics relating to this forecast follows: INDICATED: I. New Fixed Capital Required $_____________________ II. New Fixed & Working Capital Required $_____________________ TTT. Timing by quarters for new capital requirement _____________________ IV. Estimated date of submission of Appropriation Request STATUS OF TECHNOLOGY: If information is available, provide a brief discussion of the product and process proposed herein. State the patent position, if any. STATUS OF PROJECT: (a) Research. (b) Engineering ) Brief comments on each as of date. ) State what has been done, what remains ) to be completed, and what completion ) date is expected. 005224 Submitted by: LAM006434 Exhibit ni Page J. of 2 APPLICABLE ONLY TO FORECASTS INVOLVING NEW FIXED CAPITAL IN EXCESS OF $250, 000 MONSANTO CHEMICAL COMPANY DIVISION To: THE EXECUTIVE OFFICES OF THE PRESIDENT DATE CONSTRUCTION FORECAST NO. or INVESTMENT FORECAST NO. FOR: (Insert descriptive title)___ FROM DIVISION A summary of the more important statistics relating to this forecast follows: INDICATED l. New Fixed Capital Required $ II. New Fixed & Working Capital Required m. Timing by quarters for new capital requirement IV. Estimated date of submission of Appropriation Request V. This forecast is "Must?1 or "Deferrable" SC 005225 (continued - 1) LAW1006435 Exhibit III Page 2 of 2 STATUS OF TECHNOLOGY (If information is available, provide a brief discussion of the product and process proposed herein. State the patent position, if any) STATUS OF PROJECT (a) Research (b) Engineering (c) Market Development ) ) ) Brief comments on each as of date. ) ) RECOMMENDATION The Division recommends that this Forecast has reached the stage 'where it should be included in the Cash Forecast. 005226 General Manager LAM006436