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Components Team Industrial Automation. Jim Platt. Components Agenda. Best Practice Mkt Trends. Components – Plastic Resins Announced Global Polypropylene Additions. Million Metric Tons. Global capacity increasing in Middle East & Asia Pacific. Source: CMAI Oct 2007.
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Components Team Industrial Automation Jim Platt
Components Agenda • Best Practice • Mkt Trends
Components – Plastic Resins Announced Global Polypropylene Additions Million Metric Tons Global capacity increasing in Middle East & Asia Pacific Source: CMAI Oct 2007
Components – Plastic Resins Net Polypropylene Global Trade By 2012 Middle East will be primary global exporter of PP supporting demand in China & Europe Source: CMAI Oct 2007
EMR Preferred, Tier I Resin Designing Products Using Best Cost Grades Resin Selector Tool PSU & Emr ADC Corporate Procurement Division Engineering Division Procurement Key Suppliers • Active Tier I Conversion Projects $3.7M (existing Applications) • Mtrl Selector Tool Usage >400 usage “Hits” / month since April ‘07 • Embed in NPD process
EMR Resin Strategy ImpactTop Programs FY08 & 09 – Current Applications EMR Tier I, Preferred Resins • EMR Resin Strategy (Convert to preferred Tier I Mtrls) is being realized on existing applications & supported by: • EMR Resin Selector Tool • Global Component Team efforts & resources
Components – Plastic Resins Metal To Plastics OpportunityAluminum Die Cast to T-Set BMC Resin @ In-Sink-Erator In-Sink-Erator: Evolution Disposals – Upper End Bell • Convert Aluminum Die Cast UEB to Plastic (glass filled T-Set BMC Molded Part) • Annual volume (Units):1.1M • Identified Savings:$.55/ea (40% reduction) / $600K/yr • Capital Investment: 3 Molds @ $400K total (ROI < 1yr) • Timing: Production by Q2 FY08
Resin Rationalization – Current ProjectConvert existing Tier II (Nylon) to Tier I (PP) - Emerson Motor Co. Emerson Motor Co Dryer Motor Fan Application • Convert existing design from Tier II to Tier I resin From: glass filled, flame retardantNylon ($2.00/lb) To: 30% glass filled, flame retardantPP ($1.30/lb) • Annual volume (lbs): 400K • Savings opportunity: $0.70/lb / $280K/yr • Timing: Q2 FY08 - production
Resin Rationalization – Current ProjectConvert existing Tier II (ABS) to Tier I (PP) - ClosetMaid ClosetMaid J – Hook Mounting Bracket • Convert existing design from Tier II to Tier I resin From: high impactABS ($1.00/lb) To: 20% glass filled PP ($0.80/lb) • Annual volume (lbs): 1.0M • Savings opportunity: $0.20/lb / $200K/yr • Timing: Q4 FY07 - production • Benefits: Improved performance; eliminates fracture / break problems
Resin Rationalization – Current Project Convert existing Tier II (PC/ABS) to Tier I (PP) - ASTEC Power King Fa & SPC PP resin Challenges • Dull Finish on Polished Surface Dull finish • Laser marking is not clear SPC PP Pc + Abs Laser marking on box using King Fa PP is “lighter shade”