Document zd01pJML9Ym44V0axD56aqaZg

DON'T SAY n-WRITE IT To, E R. S. WEIS From_________ _________' __________________Location Location Subject CASH MANAGEMENT - JACKSON LABORATORY .......`...... .... HEWARK"AND..'NEWPORT------------ ________ Phono No.__ Dfl,, 1/14/82 Attached for your information is a copy of our commitment to the 1980 Departmental Cash Conservation Program. I RSW: gmd Att. - -a r ev . io-aj YOUR PLANS FOR TOMORROW DEPEND ON YOUR SAFETY TODAY CH-1003 <mm KTAWJSMID * E. I. Du Po n t d e Ne mo u r s & Co mp a n y IMCOMPOftATCO Wil min g t o n , De l a w a r e 19898 CHEMICALS. DYES AND PIGMENTS DEPARTMENT JACKSON LABORATORY cc: S. C. Doberstein E. E. Jaffe E, 0- Langerak March 21, 1980 To J, G. Ishikawa, B-17305 From:v~^. G. Bottomley CASH MANAGEMENT - JACKSON LABORATORY __________NEWARK AND NEWPORT R&D expenses and capital projects can be reduced up to $940M, and R&D programs can be expedited to provide up to $1,675M in savings for a total improvement in cash position of $2,615M in 1980. Details are attached. CGB:gmd Att. DUP050145645 N 26452.01 CASH CONSERVATION - JACKSON LABORATORY Capital Expense Reductions No. 2 - 1980 Construction Forecast Projects Direct Purchases Proposed 1015 240 1255 Revised 625 180 805 Savings 390 60 450 Removed From Forecast: Replace Roof, Wings 1 & 2 Heating Control System, J-24 Drop Ceiling, J-27 Renovate Offices Anilinoacridone Faci1ities Reduce Direct Purchases Additional Possible Deferrals: Improve H & V, Wing 5, J-l Replace Permutit Water Syste, J-3 Replace Liq. Chromatography Install Backup Water Chiller, J-l \y Replace Cary Spectrophotometer Replace Corridor Ceiling, Wing 1 $17 5M 15 30 20 150 60 $450M $ 75M 15 35 10 40 30 $200M If units fail, will have to be replaced immediately. $M 450 200 DUP050145646 N 26452.02 Cash conservation - Jackson Laboratory Page 2 Reduce Overtime - All J.L./T.L./G.A.L. 1979 Actual 23,767 hrs.: $380M (3.8% of hours worked) 1980 Projected: 400M Potential Reduction: 100M (Total C.W. Average - 6% hrs. worked - excludes Associated Units) Exert more overtime control through Managers. Consider second shift where necessary. Materials - J.L. Storeroom Plant Outside Eng. Mat'!* 1979 Actual 243M 12M 505M 207M 1980 Budget 276M 37 607M 19 7M Potential Reduction 27M 4 61M (Cut 10%) *Pilot Plant - Aromatics precludes any reduction. Storeroom Inventory - J.L. December, 1979 131M February, 1980 108M Target - Maintain 23M inventory reduction. Use of blanket orders with major vendors Swagelok fittings no longer inventory item. Reduction of order quantity of slow moving items. Reduce Travel - J.L. 1979 Actual 54M 1980 Budget Potential Reduction 60M 12M s $M 100 92 23 12 DUP050145647 Cash Conservation - Jackson Laboratory Page 3 Reduce Outside Courses/Meetings - J.L. 1979 Actual 14M 1980 Budget 21M Potential Reduction 12M Library Subscription Costs 1979 Actual 76M 1980 Budget 60M Potential Reduction 16M Expenses - Newport and Newark Reduce materials, supply, travel 10% Reduce outside testing expense 10% $20M 15M * Total $M 12 16 35 $940M DUP050145648 INCREASED CASH FLOW Programs which can be expedited to increase cash flow: Aromatic Products Program (Needed Action) 3,4-Dichloroaniline - Decrease catalyst use (Need plant commitment) Timing 2Q '80 9 p-Nitrosodium phenolate (PNSP) - Reduce start-up losses (Delay PNSP storage safety work) 2Q '80 + p-Nitroaniline (PNAN) - Reduce cycle time (Delay PNAN process update) 3Q *80 p-Nitroaniline - Modify recipe (Expedite safety survey) 3Q '80 o-NitrochlorObenzene - Increased recovery (Delay five nitrochloro- benzene project items) 3Q '80 Total Aromatic Products Savings $ M in 1980 130 300 155 670 150 $1405M Colored Pigment Products QA - Substitute H-SO. for acetic acid (Plant trial) 2Q *80 "Krolor" - Substitute sodium silicate for titanyl sulfate 2Q '80 * Total Colored Pigment Products 170 100 _________ $ 270M C. G. Bottomley/gmd March 21, 1980 DUP050145649