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Dow Corning Corporationdowcorning.com

Dow Corning Corporationdowcorning.com

Russell CzolgoszJanuary 22nd, 2010Russell Czolgosz

January 22nd, 2010

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Pursuing our vision:

We are innovative leaders

unleashing the power of silicon

to benefit everyone, everywhere.

Living our values:

Integrity Employees Customers Quality

Technology SustainabilitySafety

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Dow Corning locations worldwide

Manufacturing Sites

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Serving customers’ diverse needs…

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Dow Corning innovating around the world

More than 7,000 products and related services

Approximately 25,000 customers

Over $5 billion in sales in 2008, globally dispersed with more than 60% outside the US

Approx. 10,000 employees worldwide

A global leader in silicones and high purity silicon

Strong channels to market – distributors, web, commercial organization

The Charge of Automationand Why Dow Corning Pursues it!

Implement and support automation solutions, position strategic automation capabilities that ensure safety and security which generate savings of $100M - $150M over a five year period and sustain manufacturing operability by using best practices, standardized technologies, and leveraging existing expertise to accelerate manufacturing productivity.

Spirit of S88

• S88 isn’t just a standard for software, equipment, or proceedures

• It’s a way of thinking, a design philosophy• Understanding S88 will help you better design

your processes and manufacture your products

S88 works with ALL levelsof automation

S-88 Expectations

• Decreased Batch Cycle Times• Increased Cell Productivity• Reduced Product to Market Commercialization Time

– IE, New Recipe Creation• Configurable/Changeable Recipes• Consistent Product Quality• Standardized Vocabulary• New ways to SPC the process

– Duration of Operations and phases

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212 Building (Cell)Pulp/Paper Coatings• 5 types of Units -

– Equilibration Kettles– Feed Tank– Volatiles Stripping

• 60 recipes• Average Batch Time ~ 20 Hours• More than 2,100 batches / year / cell

@ 90% OEE

OEE – Overall Equipment Effectiveness

• Availability = Operating Time / Planned Production Time• Performance = (Parts Produced * Ideal Cycle Time) / Available

TimeIdeal Cycle Time is the minimum cycle time that your process can be expected to achieve in optimal circumstances. It is sometimes called Design Cycle Time, Theoretical Cycle Time or Nameplate Capacity.

• Quality = Good Pieces / Total Pieces

• OEE = Availability x Performance x Quality• OEE Factors in downtime (scheduled and

unscheduled), bad quality, and of not running at design rates

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Operator Graphics – Building Level (Cell)

Operator Graphics - EMs

Base Graphic

Equipment Module Graphic

Discharge Phases:• Discharge Shutdown (all stop)• Discharge Back to Kettle (Recycle)• Discharge through Filter• Discharge through Heat Exchanger 1• Discharge through Heat Exchanger 2• Discharge through Heat Exchanger 1 & 2• Discharge through Heat Exchanger 2 and

Filter

Recipe Structure

A Simplier Breakdown

• Original Code was 186 sequential steps,

with 6 actions per step• New Code is 9 Equipment modules and 39 total phases

– Jacket Temperature– Agitation– External Heat Exchanger– Vessel Pressure Blanketing / Vacuum– Raw Material Feeds– Catalyst Feeds– Atmosphere Inerting– Bottoms Liquid Recirculation / Filtration– Timing and Messaging

Discharge Phases (7):• Discharge Shutdown (all stop)• Discharge Back to Kettle (Recycle)• Discharge through Filter• Discharge through Heat Exchanger 1• Discharge through Heat Exchanger 2• Discharge through Heat Exchanger 1 & 2• Discharge through Heat Exchanger 2 and

Filter

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0.0

10.0

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70.0Example Kettle Batch Times

Ho

urs

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0.0

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70.0Example Kettle Batch Times

Ho

urs 31.3 Hours

24.5 Hours

62.8 UCL

37.4 UCL

How did we get there?

• Okay, so 22% reduction in average batch cycle time! Wow!– 2 ingredients were loaded in series 2 ingredients are loaded in parallel– Agitation was started after both raw materials were loaded Agitation starts as soon the bottom impeller is submerged– Mix time used to be 1 hour to ensure adequate mixing Mix time was left at 1 hour…

but ingredients are loaded at a constant ratio to each other– Heating began only when all ingredients were loaded and mix time

completed Heating begins just after kettle loading is 1/10 complete

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But I could do all that without S-88!

• Yes, you could, if you knew it all in the beginning

and, if things didn’t change…

• But…

Speed and agility are keys to new market successes

• S-88 delivers value, because your equipment can be used to do whatever your equipment can do, which is more than it was meant to do.

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Typical Dow Corning Benefits

• On average, a 15-25% decrease in batch cycle times (dependent on product mix)

• Segmented and understandable chunks of code• Graphically organized procedures• Improved communications between control objectives,

operations, logistics, and maintenance• New Product (recipe) creation has complete flexibility

– Within the constraints of the equipment, not simply what you originally intended to do with it

• Employees without specific process control knowledge and training can make recipe modifications and optimizations

Wyeth-Ayerst LederleRecipe Case Study

• The presentation by Greyssi Campos, control systems engineer at Wyeth-Ayerst Lederle, showed how S88 was used to improve process batch control and plant operations at Wyeth's pharmaceutical plant in Carolina, Puerto Rico.

• This plant produces various antibioticsusing a variety of different recipes.

ControlGlobal.com, 10/25/2006http://www.controlglobal.com/industrynews/2006/131.html

Greyssi Campos

• “Prior to our S88 implementation, it was very difficult to modify existing recipes or create new recipes.”

• “Each recipe change had to be validated, and no recipe could be modified without the involvement of control system engineers. This was very time consuming and unwieldy.”

– S88 fixed this problem at Wyeth by separating plant operations and process control into two categories.

Wyeth-Ayerst LederleCase Study, Cont. ControlGlobal.com, 10/25/2006

http://www.controlglobal.com/industrynews/2006/131.html

• “Before we implemented S88, each recipe change required new code, new graphics, and validation of both in addition to validation of the recipe.”

• “S88 has saved us a tremendous amount of time and money by eliminating code and graphic validation when recipes are changed.”

When a new recipe is created or an existing recipe is modified, Wyeth now only needs to validate the recipe itself because all of the unit operations that were combined and linked to create the recipe were previously validated.

Wyeth-Ayerst LederleCase Study, Cont. ControlGlobal.com, 10/25/2006

http://www.controlglobal.com/industrynews/2006/131.html

Recipe Creation

• Graphically Driven – Drag and Drop• Doesn’t require controls experience to create or modify recipes• Users choice for parallel or series branching

– At all levels of the recipe:• Parallel or Series Unit Procedures• Parallel or Series Operations• Parallel or Series Phases

• Copy existing recipes to easily create new ones

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S-88 Limitations and Realistic Expectations

• If you can’t sell it, you can’t make more of it!• Decreased batch times are only realized if product demand

goes up accordingly– Especially for single product units/cells– Despite reductions in batch time, sales remained stable, and

actually declined heading into the economic recession• The Cell/Unit is still only as good as its weakest link

– Don’t forget to bolster your reliability• New processes are perfect for S-88

– Do it right the first time

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Conversion to S-88

Economic Recession

207 Building (Cell)Silicone Rubber Production• Only 3 Types of Units - but 22 Units in all

– High Consistency Rubber Mixer (Qnty 7)– Low Consistency Rubber Mixer (Qnty 4)– Bulk Filler Hopper (1/mixer = Qnty 11)– 16 equipment modules / 30-40 phases

• 1,100 Active Recipes• Average Batch Time ~ 4 hours• More than 21,000 batches / year / cell

@ 90% OEE

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Innovation is at the core of what we do

15-20% of our products and services are less than five years old

4-5% of sales is spent on R&D

Approximately 50% of R&D is spent on sustainability-related projects

More than 4,000 active patents

Beyond products -> solutions

This growth rate and “development to

market speed” hinge on the flexibility that

S-88 implementations provides!

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Growing globally & S-88 is used throughout

Pune, India

Zhangjiagang, China Hemlock, Mich. (USA)

S-88 experience and understanding is preferential to Dow Corning’s hiring and is a competitive advantage.

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dowcorning.com

Thank-you and are there any Questions?

The information provided in this presentation does not constitute a contractual commitment by Dow Corning. While Dow Corning

does its best to assure that information contained in this presentation is accurate and fully up-to-date, Dow Corning does not

guarantee or warranty the accuracy or completeness of information provided in this presentation. Dow Corning reserves the right

to make improvements, corrections and/or changes to this presentation in the future.

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