Globalization of the Cytec Product Stewardship System

1. CYTEC Globalization of the Cytec Product Stewardship System Robert D. Crawford Manager, Global Hazard Communication Programs

2. Topics • Cytec background and organization mission • System overview • Background/Major Implementations • Key business processes • System functionalities and content • Software improvements/customizations • Labeling initiative • Metrics/Process capabilities • Current initiatives

3. About Cytec Industries, Inc. • Global specialty chemicals and materials company • Product serving diverse end markets • Aerospace • Adhesives • Automotive and industrial coating • Chemical intermediates • Inks • Mining • Plastics • 44 plants and R&D facilities in 19 countries • ~$3.3B annual sales

4. Product Stewardship & Regulatory AffairsMission • Actively promote the responsible and safe use of Cytec products around the world and manage product regulatory compliance globally through: • Corporate Stewardship • Sustainability • Regulatory Compliance • Product Regulatory Advocacy • Superior Service • Continuous Improvement WERCS System is a critical tool to support department mission

5. Cytec Product Stewardship System • Software • WERCS = Worldwide Environmental Regulatory Compliance Solutions • Overall use • Store and maintain product HSE data to protect human health and the environment • Comply with global chemical regulations • Provide product information in the form of SDS’s and labeling • Interface with other systems

6. Background/Major Implementations • Evolution from paper to database systems • Original Wercs implementation (Aug 2002) • Migrate from homegrown legacy system • Meet functionalities of old system and add new needed functionalities • Electronically migrate 60 years worth of Cyanamid/Cytec data and documents • Second implementation (Dec 2006) • Integration of UCB Surface Specialties • Migrate from SAP EHS and other homegrown systems • Establish interface to SAP ERP’s • Software Improvements/Customizations • Global Labeling Project Cytec WERCS System has globalized as our business has grown

7. System Globalization Drivers and Process • Strategic review of business needs versus systems • Homegrown system would not meet future needs without major redesign • Move to “off-the-shelf” commercial software • Rigorous process/Partnership with IT • System reviews and selection • Requirement definitions and contract • Detailed project planning • Weekly status review with senior management • Both implementations delivered on-time and budget

8. Overall Product Stewardship Business Process • Cytec Policy – No product can be manufactured or sold without a PSCF/AMA and approved MSDS and Label • PSCF (Product Stewardship Compliance Form) and AMA (Additional Material Approvals) • Assign codes to enable setup in ERP systems • Assess hazards • Determine regulatory classifications • Prepare SDS and Label System directly supports our key business process

9. Key System Functionalities • Globally accessible and secure • Flexible to add new fields, languages and create new format SDS’s • Intranet access • Interfaces with ERP systems • Product labeling • Gate-keeper/products to regulated countries • SDS distribution • Electronic PSCF

10. System Data Content Overview • Product business information • Detailed composition • Manufacturing information • Toxicology & environmental data • Chemical, physical, and other properties • Regulatory classifications • SDS/Label documents • Chemical component data System contains much more than just MSDS data

11. Products and Documents • Approximately 20,000 active materials including: • Commercial products • R&D samples • Intermediates • Raw materials • Wastes • Another 20,000 “inactive” materials

12. SDS and Labels • System contains ~90,000 active SDS and Labels • Currently published in 34 formats and 22 languages including Chinese, Japanese and Korean • Major Formats • US • Canada • EU • Australian • Mexican/Latin American • Japanese • Asia/Pacific

13. Software Improvements – 1st Implementation • Custom product select • Generics • Powerwercs formatter and editor • PSCF • Ad-hoc reports for Web • Phrasewercs (copy & “buddy languages”) • Validation for missing phrase translations • CD Writer • Formulation data (FTXT/FVAL) • Models • SQL based rules • Faxback system • TSCA12b • OPIT

16. More Improvements between Major Implementations • PSCF/Powerwercs • Display and print bill of materials for manufacturing formulation (XBOM) • Author/Powerwercs • Allow selected subformats to override automatic chemical name masking • Translations • Improve validation program to detect missing phrase translations for component data • Print Queue • Batch Publishing/Printing

17. Software Improvements – 2nd Implementation • Product checkout (block publishing) • PDF archive • Published document screen • Screen size scalability and hide unauthorized documents • Interfaces • MSDS distribution – 3 SAP instances • Dangerous goods – 1 SAP instances • Material master – 3 SAP instances • PLIMS • Product search • Search on aliases • Checkbox to hide aliases • Phrasewercs – screen level security • PSCF program – new fields, reorganize Continuous improvement facilitates our capability to support business

18. Global Labeling Project • Objective: • To implement a global labeling solution (process, ownership and tools) that will meet the requirements of customers, business units, manufacturing and satisfy regulatory needs. • The solution must integrate BPCS with Cytec WERCS MSDS. • In addition it will centrally integrate regional, local, customer and business information not currently in either BPCS or WERCS.

19. Scope • All Specialty Chemicals business units and customers • All plants, distribution centers, tollers, re-packers and resale sources • All bulk and packaged finished commercial products (generic and specific, 3rd party, etc.)/ excluding R&D samples • Labeling processes for preparing and maintaining preprinted packages • All countries and languages necessary to meet sales and regulatory requirements • All customer specific requirements • All other current label inclusions (e.g. Kosher, NSF, gross/tare/net in lbs/kilos, lot numbers, trademark, care and feeding directions, etc.) • May be exclusions for non-BPCS sites and special regulated products such as pesticides • Labelwercs is the selected solution

20. Drivers of Change • Problems with incorrect labeling and late shipments • Obsolete and fragmented global labeling systems not linked to SHE or BPCS • Labor intensive to integrate acquisitions • Inconsistent label content, design and ownership of data globally

21. Benefits • Improved Customer Satisfaction • Facilitate better labeling and shipping practices • Reliability • Consistent and stable global solution • Flexibility • Ability to increase our label service offering • Easily expandable for future growth • Accuracy / Consistency • Reduced regulatory compliance risk • Consistent label content source • Consistent global processes, systems and ownership of data

22. Product Label – “Document affixed to a container which identifies the product, responsible company, and provides appropriate precautionary warnings which describe hazards and safe handling measures. Product Labels also contain chemical component data and other information required by our businesses, plants and customers.” The Product Label has been divided into a number of “Sub Labels” which are areas reserved for a particular collection of information. Sub Labels can exist and be affixed to a container as separate documents or may be incorporated within a single Product Label. • Business Sub Label • Directions for use or storage requirements • Patent statements • Slogans • “Quasi-regulatory” information such as NSF or Kosher marks • Regulatory Sub Label • Company logo • Company name, address and emergency telephone number • Product name • Precautionary warnings and handling measures • First aid • Chemical components • Container warnings • Hazard Symbols • Transportation Sub Label • Transport symbol • UN Number • Proper shipping name • Technical description • Flash point • Customer Sub Label • Customer codes • Bar codes • Customer name and address • Hazard Ratings (e.g., HMIS) • Manufacturing Sub Label • Batch or Lot number • Bar code • Expiration date • Country of origin

23. Technical Overview • Labelwercs software • Design and render labels • Overall Wercs system hosts regulatory label data • Front end based on VB • Enforces business rules, validations and ties Wercs data to ERP (BPCS) • Wercs Label templates • Templates designed in accordance with regional regulatory requirements • Scripts attached to retrieve ERP data • Color laser printers • Polyester label stock • Order scenario automatically generates label using appropriate template and language's

24. Implementation • Phased implementation • Started April 2006 - US plants and distribution centers • June 2006 – Canada • July 2006 – Australia • January 2007 – US tollers and US plants from UCB acquisition • China, Europe and other regions in-progress

26. MSDS Production Metrics • Use data generated from Wercs to keep metrics on our production processes • Key measures include: • SDS/Labels published • PSCF cycle time • Performance against due dates • Continue to use Six Sigma tools to understand and improve our processes • Control charts, thought-maps, value-stream mapping, process mapping, relationship diagrams

27. SDS Production - 2006

28. Process Capability – PSCF cycle time • Control chart shows turnaround time for each request • Upper/Lower control limits (UCL/LCL) represent normal process variation • All normal requests expected to fall within range • Current Process capability of 21 days based on UCL with a turnaround average of 10 days

29. Current Initiatives • REACH • GHS • Continue automated labeling roll out • Additional interfacing • More data automation Questions???