Overview of Value Process East VPE Flexible Integrated Innovative

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(No Transcript)
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Ill cover ...

• An overview of NOVA Chemicals
• Drugs and alcohol testing, an important program
  to know about
• Supply chain management
• MRO inventory management the model
• Vendor on time delivery an important enabler

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For many suppliers, NOVA Chemicals Means
Joffre ...
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There are two ethylene / PE complexes in NOVA ...
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Joffre 6.2 B lbs. (2.8 kt) Ethylene2.2 B lbs.
(1.0 kt) Polyethylene
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Sarnia 1.6 B lbs. (0.7 kt) Ethylene 1.4 B lbs.
(0.7 kt) Polyethylene 4.4 B lbs. (2.0 kt)
Co-Products
Includes new 2.8 B lb. E3 cracker which is a
50/50 joint venture with Dow
Includes 1.0 B lb. PE2 line starting up in 2001
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fifteen styrene/polystyrene plants ...
Carrington
Breda
Ribécourt
Europe
Berre
North America
Montreal
Sarnia
Springfield
Painesville
Belpre
Beaver Valley
Chesapeake
Bayport
Decatur
LEGEND NOVA Chemicals Styrene Monomer NOVA
Chemicals Expandable Polystyrene NOVA Chemicals
Solid Polystyrene
Channelview
Two long-term tolling arrangements for 400
million pounds (180 kt) each
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and a further 18 technology and licensee
locations.
Styrenics Technology Centers Beaver Valley,
PA Chesapeake, VA Breda, Netherlands
Stryenics Licensees Taiwan
(2) China Thailand India
O/PO Technology Centers Calgary, AB
PE Licensees India (3) Venezuela China
Nigeria Uzbekistan Italy Brazil South Korea
Bulgaria (Not built yet)
Licensors NOVA Chemicals (U.S.A.) Inc., NOVA
Chemicals Europe S.A.S., NOVA Chemicals
Corporation
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Production Capacities - kt
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DA Testing, For a Safe Work
Environment.
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The Benefit
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Drug and Alcohol Testing

• Three testing requirements
• Pre site access
• Testing for cause
• Post incident

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Objectives

• The pre-site access testing has two objectives
• To send a message about the importance of a drug
  and alcohol free environment on the Joffre site.
• To deselect those individuals who test positive
  during a preplanned DA test.

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Program Overview

• Any contractor who is new to site, or has been
  off site for more than 90 days, must pass a drug
  and alcohol test before arriving at site
• Testing will be done at an approved facility,
  using approved methods
• It is the responsibility of the contractor to
  manage the testing, and to produce auditable
  evidence of compliance

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Testing Method
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Rehabilitation

• Would we accept personnel onto the site who have
  tested positive for drugs in the past but who
  have subsequently successfully completed the
  required counseling and return to work testing?
• Yes, with approval. Our concern is sustained
  fitness to work.

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Inventory management, an edge beyond
price.
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So what?

• We hold close to 1 years equivalent MRO spend in
  inventory
• A 10 reduction in inventory, is as good as a 10
  reduction in price

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Our past process ...
Influences - vendor lead time - vendor
performance - equipment criticality
What can we eliminate?
Service Level - on time delivery
Deadstock materials Inventory categorized by value
Inventory levels for high value, deadstock items
Input
Consequence
Decision
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Supply Chain Optimization Process
- vendor lead time - vendor performance -
equipment criticality - bill of materials
What kind of lead time can we give, and what on
time delivery do we need?
- Plant rates - Plant criticality - Business
conditions
Inventory Level
Service Level for each level of
equipment criticality - lead time - on time
delivery
Input
Decision
Consequence
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Enablers and Barriers

• Enablers
• Integrated system
• Partner cooperation
• Vendor contracting, fixed lead times
• On time delivery

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Where were at

• Enablers
• Integrated system
• Partner cooperation
• Vendor contracting, fixed lead times
• On time delivery

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Thanks for your attention.