REPORT FOR
MANAGEMENT
Effective Purchasing Relies on the Analytical Laboratory Effective purchasing in the chemical process industries is an important factor in the profit or loss showing of a company. Here a top purchas ing executive whose company buys $45,000,000 worth of chemical r a w materials per year tells w h y the purchasing department looks upon the analytical chemist as an ally and w h y such a close relationship exists between the purchasing and analytical functions.
J. H. BLAKNEY Vice President in Charge of Purchases, Co/gafe-Pa/mo/iVe Co., 300 Park Ave., New York, Ν. Y.
VOLUME
2 8, N O . 3, M A R C H
Q O M E T H I N G new has been added in the ^ year 1956. T h r o u g h o u t the world, millions of consumers of soaps, deter gents, cleansers, dental cream, sham poos, shaving soaps, and a host of other toilet preparations, will be re minded b y the distinctive seal on Col gate-Palmolive packaging t h a t 1956 is the 150th anniversary of the founding of this company. Started in 1806 b y William Colgate in a small factory located in downtown New York City for the manufacture of quality soaps and perfumes, the ColgatePalmolive Co. now packages over 100 household and industrial products in seven manufacturing plants in N o r t h America and 25 foreign factories, covering nearly every population center in the civilized w-orlrl. I n spite of the intense competitive n a t u r e of the soap industry, this company has not only survived b u t chalked up a record of continual growth and expansion. This is especially remarkable in view of the changing times and customs and the whims of its major customer, t h e con suming public. T h e manufacture of soap is one of the oldest chemical processes a n d m a n y of the earliest analytical procedures stem from the necessity for accurate control of raw materials a n d process reactions. There are m a n y legends concerning t h e early soap boilers, who judged their product through feel and taste. I have known m a n y of these old-timers and have been amazed a t the skills t h e y 1956
have developed through years of appren ticeship and costly trial and error. As soon as appropriate chemical analytical methods had been developed, demon strated, a n d properly explained, the soap m a k e r quickly learned to accept t h e m for the control of his processes. H e appreciated not only the greater accuracy and consistency provided b y test t u b e a n d buret b u t also t h e saving of wear and tear on his tongue. M a n a g e m e n t also soon awoke to t h e advantages of these controls. T h e soap manufacturer was now able to produce a product of consistent quality, irrespective of varying raw material supplies, weather conditions, and the fluctuating efficiency of his workmen. I t developed t h a t the buying public also appreciated the uniform quality, and t h a t this was being reflected b y increased sales. At this point two shrewd moves were indicated. First, a laboratory was established, composed of the best analytical chemists available, to develop better, faster, and more accurate methods of control. Second, production capacity was expanded to exploit the reputation which these brands had achieved. Quality control paid off and this year Colgate celebrates its 150th year of growth and prosperity. T h e soap industry has always been a purchasing industry. F o r m a n y years profits (or even sometimes losses) have been largely dependent on the prices paid for raw materials. F a t s , oils, a n d perfume ingredients are p u r 7A
REPORT FOR MANAGEMENT chased from many sources all over the world. Unlike the chemical industry, many of these suppliers have no facilities for analytical control, and production requirements have often necessitated purchases from unknown or untested sources. The phrase "caveat emptor" is especially significant to the raw material buyer, as he well knows that the quality and value of a large purchase will reflect significantly in the profit statement of his company. He quickly learned that the control chemist was his ally in this respect and a close liaison between these two departments soon developed. Some of the earliest analytical methods were established for the purpose of protecting the buyer of animal fats and vegetable oils. Many of these determinations have been included in the rules of conduct of trade organizations and societies and are now accepted standards. On the other hand, the buyer may require material of unusual qualities and must consult with the analytical chemist to develop specifications and test methods to be written in his contracts. To speak of buying on a quality basis suggests buying the finest grade. This is not necessarily true; the best quality from the purchaser's viewpoint is the quality best adapted to the particular end use, based on performance and price. Many times a medium grade may be acceptable, or under certain market conditions it may be more profitable to refine a less costly grade. Here, the buyer relies on the Analytical Division to analyze samples of offerings and to interpret results toward a decision as to the most economical purchase. Unusual climatic, political, or economic situations may drastically and on short notice alter the availability of natural raw materials. The analytical chemist, with his experience in the analysis of the properties of a vast number of materials, is in a position to suggest an available substitute. Many purchases, especially those subject to deterioration during shipment, are subject to price adjustment based on analysis upon receipt. The control chemist directly shares the responsibility with the Purchasing Department for protecting his company's interests. Finally, in the event of litigation resulting from quality claims, the chemist's technical testimony is essential to successful adjudication. Historically, the Purchasing Department and Analytical Laboratory have worked hand in hand. In fact, their mutual responsibilities have been indispensable to the soap industry. With the advent of synthetic detergents and Colgate-Palmolive's increased activity in the manufacture of toilet articles. VOLUME
the purchase of chemical raw materials has become of great importance. From a mere handful of chemicals, mainly alkalies, requirements now exceed 200 items with a total annual value of approximately $45,000,000. The determination of the most desirable technical quality of these many and varied new materials, plus the reconciliation with availability and price, has, in itself, increased the interdependence of purchasing and analytical functions. Frequent reappraisals are necessary to ensure a balance between technical and economic factors. New and improved analytical techniques demand continual review of chemical supplies and their sources. The scope of these activities has grown to such an extent that it has become desirable to enlist the cooperation of vendors in establishing appropriate analytical methods. Buyers, in their conversations with sales representatives, find that over and above the consideration of price and availability they must be prepared to discuss both quality and the methods by which it is determined. They are continually alert throughout their many business contacts to new and improved analytical methods used by the trade or competition, which may be of value to their company. Purchasing, charged with the responsibility of dealing with outside suppliers, is frequently asked to arrange conferences for the mutual discussion of analytical tests and results. Trips are arranged for Colgate personnel to visit suppliers' laboratories in order to study organization, techniques, and equipment. Identical samples are distributed and comparative analysis and check result. Indeed, it can be said that a vendor's analytical facilities and reputation can be considered as a factor of service and weighed in a decision on the selection of source of supply.
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Cements Carbons Hard Metals Coals Carbides Silica Coke Clinkers
Dolomite Brittle Resins Pigments Rocks
Adequate Staffing
Of continuing importance to our analytical groups is the problem of adequately staffing the control laboratories which perform the routine analyses on incoming raw materials (as well as work in process and finished products). When it is considered that individual deliveries may run well over 100 per day, one realizes the tremendous work load involved. Over recent years laboratory personnel has been more than tripled and control work is frequently performed on a shift basis. Realizing that many of our specifications on incoming chemicals are identical with control analyses performed at some point in their manufacture, suppliers are encouraged to submit their analyses concurrent with shipment.
2 8, N O . 3, M A R C H 1 9 S 6
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Circle Nos. 9A-1, 9 A-2 on Readers' Service Card, page 59 A
9A
REPORT FOR M A N A G E M E N T
Courtesy Eiso Research & Engineering Co.
THE IDEAL PRESS FOR MAKING KBR PELLETS FOR INFRARED SPECTROSCOPE ANALYSIS •
20 Ton Press
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These are forwarded to our Statistical Quality Control Department and the appropriate plant laboratory. If rea sonable concurrence and adherence to specifications are experienced over an extended period of time, it may be practical to minimize many of our routine daily analyses. This procedure, still in the embryonic stage, has already considerably reduced the work load on several multiple daily deliveries. There even appears to be some validity to the assumption that a periodic spot check of raw materials can be as valuable a control as routine daily analyses on a limited scale. Certainly, this challenges the analyst to employ his initiative toward correlating his findings with plant difficulties or product defici encies. This close liaison between purchasing and analytical is typical of most indus tries and contributes substantially to the success of many business enter prises. It is particularly important, however, within a company where pur chases of materials and sendees repre sent the major portion of the finished product cost. The purchasing func tion is one of major importance and I am indeed grateful to the foresight of our management in having provided
the highest caliber analytical personnel to back us up in these duties. Responsibilities of Analytical Groups
The workhorse of the analytical groups is the Control Laboratory oper ating at each manufacturing location under the supervision of the plant chemist, a member of the manufactur ing superintendent's staff. The general purpose of the Chemical Control Laboratory is to serve as a quality and process control tool. This is done by analyzing representative samples accu rately and supplying the information to the proper persons in a form and at the proper time to be of greatest value to them. These laboratories are respon sible for all routine analyses in accord ance with standard practice instructions plus any special tests that the plant chemist may consider desirable. Sam ples of each receipt of raw materials are received, classified, and stored, ana lyzed, or composited. Results of anal yses are recorded and forwarded to the appropriate buyer and the proper manufacturing foreman. All devia tions from specification limits are immediately called to the suppliers'
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Self-contained
DIRECTOR OF RESEARCH
• Bench mounted •
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ASSISTANT DIRECTOR
• 9 " χ 9 " platen area • 2 2 " max. adjustable
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DIVISION HEAD
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SECRETARY
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INSTRUMENTS GROUP
METHODS GROUP
ORGANIC IDENTIFICATION
133 So. 14th St., N e w a r k 7 , N . J . Circle No. 10 A on Readers' Service Card, page 59 A
10 A
Figure 1 .
RADIOISOTOPES
ANALYSIS SYNTHETIC DETERGENTS
GENERAL ANALYSIS
RESEARCH
TOILET ARTICLE ANALYSIS
O r g a n i z a t i o n o f A n a l y t i c a l Division
ANALYTICAL
CHEMISTRY
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CLEAN: tions.
Uses spherical joints f o r all connecDemounts simply from clips f o r cleaning.
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REPORT FOR MANAGEMENT attention. Persistent or flagrant deviation may warrant rejection of part or the whole of an incoming shipment. Such decision is made only after consultation and agreement between the plant chemist and the buyer of the material. Purchasing personnel are in continual contact with the Control Laboratories in order to check on the quality of daily receipts to ensure a continuing adequate supply of satisfactory materials. The Control Laboratory employs approximately 75 chemists and operates on a three-shift basis. Some of the analysts are student chemists completing their academic studies. The broad background gained through familiarity with a wide variety of materials and processes is considered exceptional experience and these analysts are continually in demand to satisfy personnel requirements by all departments. Our general purchasing agent in charge of all chemical purchasing was originally employed in the Control Laboratory. The Standards Department, a division of the Research and Development Department, is responsible for the publishing and distribution of all raw material purchase specifications and standard practice instructions. Here is perhaps the point of greatest liaison with the Purchasing Department. Differences in point of view between the scientific and commercial or economic aspect are ironed out within this group. Frequent meetings are held with purchasing personnel and analytical or other technical departments to establish new specifications and modernize or modify existing standards. The keystone of our world-wide operations is the Analytical Division, a part of our Research and Development Department. This group consists of 35 chemists, 11 technicians, and a secretary. Its organization is shown in Figure 1.
1. complete neutrality 2. absolute
flexibility
