presented to us by a worn-out pilot plant, we decided to retrench and assume a position of compromise. JVe would spend $12,000 rehabilitating the pilot plant. This would allow us to continue the production of allyl starch a t its existing level. 111 the laboratory, we would accelerate our basic research program and try to solve the basic defect of allyl starch-its poor water resistance. Engineering\?-ise, we would turn every Pffort toward devising a more economical process. K e would call a halt to all sales development and conduct only such sales work as m-as necessary t o maintain and service existing customers. Promotion and advertising were to be ended. Many man hours were expended in conferences prior to the time that n-e arrived a t that decision. Even in hindsight, it appears that our decision t o do more basic work both in the laboratory and in the pilot plant was a commendable one. If only we had made that decision 3 or 4 years earlier! The decision to cut off sales development work, however, was a difficult one. T o our development staff who had devoted their time t o faithful pursuit of the allyl starch market, this was tantamount t o severing theii right arm! The cold, cruel light of economics, however, dictated that we could do little else, and in so doing we gave ourselves an opportunity t o reflect and to evaluate. What we learned in our period of reflection mas this: Allyl starch really had a place in American industry. Despite the fact that our promotion ceased, our sales of allyl starch actually increased. Without qucstion, allyl starch had carved a niche for itself. B u t the niche it carved was in the category of specialty products, not in the category of commodities. Undoubtedly, the market could be increased, but still we could not see the 6,000,000 pounds per year t h a t was necessaq- to create a sound business. On the minus side of the ledger, we had all of the points we have already enumerated. Therefore, after some 10 p a r s of work. the project was discontinued. This is the story of allyl starch. It is one of small errors and the exercising a t times of poor judgment. The excellent properties of allyl starch, its high gloss, and its excellent solvent resistance were with it to the very end. It was largely on the basis of these properties that we mustered enthusiasm a t the start, On the other hand, we tended to de-. emphasize the poor water resistance which took away a good deal of our projected market. We used poor judgment when 1%-veacl-
vertised the product before we knew how to produce it in consistent fashion. When we finally knew how to make a good product, the 6,000,000-pound-per-year market that we hoped for had slipped away and left, us with a specialty item. We used poor judgment when we tried to tailor products to individual needs instead of trying t o develop a fundamentally good basic product. However, I n-ill not say that m’e could not get into a similx situation today, but the chances are much lcss; and I am sure that me would not make exactly the same mistakes again. Furthermore, we put more reliance these days on t,he faithful use of a new product check list which is designed to keep us on t,hc path of orderly development. Our check list makes necessary a scrutiny of such fact’ors as original idea, preliminary evaluation, preliminary development, final development, plant design, construction, full-scale production, and sales. Under each of these is a list of details which forces us t o analyze the raw materials situation and a hundred other “minor” details, Lyhich proved so important in the allyl starch situation. The details involvr oiir chemical and engineering research staff’, our market research and development men, our sales force, and our engineering arid production group. With each step, we stop and ask ourselvt.s, the question: Shall we go ahead or shall we stop? Theoretically a t least, this orderly sequence of events keeps u s from getting one phase too far ahead of any other. We do not advertise a product until we are reasonably certain that we know how to make a t least sample quantities in consistent fashion. Our more organized approach allows us to pick out and give proper emphasis t o the danger signals which our enthusiasm arid inexperience caused us to overlook in the all>-lstarch development. Some 01 you are saying t o yourselves that a product check list which has no squares for enthusiasm and faith and which points out to you in full force all of the danger signals is frequent,ly the best way to achieve failure. We are aware of this. We realize the importance of the factor of enthusiasm. We realize that no project, chemical or othervise, wr-ss ever built TTithout a lot of faith and the courage t o venture. But somewhere along the line we try to have somehody objective enough to combine enthusiasm and faith with the hard facts as they are pointed out by our orderly check list. We then strive to use sound judgment in effecting a synthesis of enthusiasm and economics. R E C E I V Efor D review November 4, 1955.
A C C E P T F D.January 3 , 1956
L. G. BLISS
U S 1959, Foote C o . initiated a development which promised t o
become t,he salvation of the welding electrode industry. This development involved a product called “Lithabond 83,” which, a t the early st8ages,u-as received with ent,husiasm by our sales and research departments, Uncle Sam, and the welding electrode industrj-, itself. There are some 25 principal manufacturers of coated welding rods in the United States. All of these manufacturers use the mme general mechanical procedures in the production of the rods. A coating composition consisting of fluxes and alloying materials is extruded under pressure around core wire of various diameters, producing coated welding electrodes. To facilitate ext.ru-
718
Foote Mineral
Co.,
Philadelphia, Po.
sion and t,o act as a binder, a sodium silicate solution is emplo>-ed in t,he coating mixture. The extruded rods are dried in continuous ovens a t 600” t o 700” F. The baked coating is mechanically hard and adherent. However, even the most efficient of drying ovens is incapable of removing a11 of the water which is present in the coating, as a small percentage remains chemically bound in the soluble silicate. This residual moisture was accepted as harmless until about 1945, when the Kat,ional Defense Research Committee turned its attention t o the development of low alloy, high strength ferritic electrodes. This electrode, which had a 3 to 4% alloy content against the usual 30 to 40%, w a ~developed t o conserve critical.
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alloying agents. Government allocation of many alloys forced the electrode industry to abandon high alloy rods in favor of this new electrode. Results with this electrode were erratic. Subsequent research revealed that hydrogen was causing weld metal embrittlement and that water contained in the sodium silicate binder was the source of this hydrogen. Accordingly, new specifications were written reducing the chemically bound water content from 1.0 to 0.2% maximum. Electrodes of this newer type are known as “low hydrogen rods.” T o meet these specifications the electrode manufacturers were obliged t o bake rods a t higher temperatures for several hours and to pack them in hermetically sealed containers. Since the rods were hygroscopic, the users had to provide small drying ovens to keep the rods dry once the package was opened. Despite these complicated precautions erratic welds resulted, probably because of improperly stored rods. Foote saw in this situation an opportunity to enter into an entirely new area of sales. Subsequently the matter was explored with the research group who expressed the opinion that there were several logical approaches to the problem of producing electrodes without the use of hygroscopic alkali silicate binders. Thus, the company began a new operation. In the fall of 1950 the market survey group was alerted. The short form market survey disclosed that the defense program would require 8 million pounds of low hydrogen electrodes per year for a 5-year period, which was a sufficient market potential t o justify an exploratory research program. Such a program was initiated. Then as one of the several tested approaches looked promising, a full-scale research program was authorized. By the summer of 1951 it appeared that the elimination of hygroscopic sodium silicate as a binder could be achieved by producing a low melting glass that would fuse a t 1100” to 1200’ F.; an organic binder, which burned off below that temperature, was developed to hold the coating in place prior t o fusion of the glass which then became the permanent binder. Sample electrodes were made in the laboratory, and assays were made on chemically combined water after the prepared electrodes had been subjected t o exposures in a wide variety of controlled humidity conditions. No combined water was detected. Weld tests gave promising results. Thus applications for patents were made, both in the United States and abroad. Then a comprehensive market survey was authorized. Looking beyond the immediate defense requirement, the survey group saw a growing market for the low hydrogen electrode in civilian markets. The gradual displacement of riveted construction by welded members loomed large as a potential market in the building field. However, the survey group was cautioned that the developed binder would require higher baking temperatures than were normally used in the industry, and that the product would cost more than conventional binders. Next, samples of the product were submitted to all producers of low hydrogen electrodes and concurrently the idea was discussed with the government agency concerned. The product was given a name-Lithabond 83-and the publicity department prepared and released a catchy booklet on ‘‘HOWto Stay Dry.” Technical information also was prepared and released, and the product development section went into action. The reports from the trade on the samples submitted were all encouraging. No adverse comments on estimated sales price or technology were received, and each electrode manufacturer made attempts t o get an exclusive on Lithabond 83. Even the government agency persisted with the usual cheering section to the extent that wisdom was buried under applause. Thus encouraged, Foote next looked to the European markets. European electrode manufacturers had an even more critical alloy situation than did we in this country. As a consequence, samples were submitted, market surveys conducted, literature bombarded continental shores, and in the nice summer months some April 1956
of our more expensive management left for Europe t o give this matter the personal attention it so richly deserved. After all, was this not the first real effort to replace the conventional binders that had ever got past the research stage? Sales reports began to filter in indicating that electrode manufacturers were making inquiries on higher temperature baking furnaces designed t o handle the production of new electrodes made from Lithabond 83. Some electrode manufacturers supplied laboratory produced rods to the government for approval; in some cases approval was received. Foote was very encouraged and installed a small frit furnace to produce trial sale quantities of Lithabond 83 for supporting small commercial runs in industry to determine whether any practical difficulties existed. I n the fourth quarter of 1952 the design of commercial baking furnaces was firmed up, but the delivery date on the furnaces was 9 months. The end of the Korean War seemed to be in sight and many of the larger electrode nianufacturers decided t o discontinue the low hydrogen rods rather than risk the capital investment for the furnace. Early in 1953 the defense program was substantially curtailed. Extensive tests indicated that very low hydrogen rods were needed only on armor plate over 5/* inch thick. Alloying elements were more available, reducing the urgency for an alloy replacement. As a result, manufacturers became more critical of Lithabond 83. Reports from the field indicated the glassy nature of the coating caused brittleness. Test procedures originally considered adequate by the Government were altered t o preclude adsorbed moisture, as well as chemically combined water. Unfortunately, Lithabond 83 did adsorb water, a characteristic that originally was recognized and considered satisfactory. I n the second quarter of 1953 one United States electrode manufacturer received delivery of a high temperature baking furnace ordered to handle Lithabond 83 type coatings and promptly converted it to a drying oven for use on conventional electrodes. The European market, originally enthusiastic about the Lithabond 83 concept of electrode production, finally decided the economics could not be supported. By the end of 1953, in,rest in Lithabond 83 ceased toexist.
QBITUARY The mortician, after examining the corpse, made several pertinent observations: 0 A few people well-placed in government circles
can excite a mass of people merely b y blowing bugles. 0 High costs, prior to the solution of a problem,
mean nothing to military, but still influence free enterprise. 0 Enthusiasm, while necessary to progress, never-
theless may dull the vision of the unwary. 0 Product deficiencies, regardless of other strengths,
may be tolerated under duress, but never can be condoned in a free, uninhibited market. 0 Haste in satisfying momentary need usually results in a waste of time and money, successful opportunists notwithstanding.
The finall chart reads: OPERATION A SUCCESS-PATIENT IN THE SUMMER OF 1953. ECEWED
f o r review November 4, 1956.
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