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A Message from the CMS Forum Director
Welcome to the Spring 2008 issue of the CMS Insider.
We are excited to announce the launch of our first CMS Training Program, to be held May 20-22 at the Detroit Marriot Pontiac at Centerpoint in Pontiac, Michigan. The program is designed to help professionals develop their capabilities in comprehensive chemical management, with a focus on developing leadership, organizational and communication skills. Instruction is led by Ithaca College professor and 30-year manufacturing veteran, Joe Sprangel, with several sessions featuring CMS practitioners and industry experts.
This month we feature a new CMS case study describing how a CMS provider tackles a major glitch in the welder water system at a GM metal fabrication plant. The results are documented to show dramatic process improvements, environmental and financial benefits.
In our Trendwatch, a great deal of attention is focused on the start of pre-registration for the EU’s REACH law taking place in less than three months. U.S. firms are scrambling to understand what it means for their company, how to prepare, the role of IT, and what their suppliers can do to help. An interesting analysis of the connection between chemical services and REACH is outlined in a new book, entitled “Chemical Leasing Goes Global - Selling Services Instead of Barrels: A Win-Win Business Model for Environment and Industry".
We hope to see you in Pontiac, MI this spring!
Warmest Regards,
Jill Kauffman
Johnson
CMS Forum Director
Chemicals Management Services open the door to process efficiency improvements and cost savings in metal fabrication
by Amy Johnson, Phil Brooks, and Laura Wolfson
General Motors Grand Rapids Metal Fabrication Plant’s metal assembly operation area began experiencing unusual equipment failures around the year 2000. The kickless cables on the welding robots would become completely clogged, sometimes to the point of splitting, and maintenance personnel complained of an unpleasant odor coming from the cooling water. These issues led to production downtime as equipment parts were replaced and repairs made.
Quaker Chemical Corporation’s relationship with this General Motors plant began in 1998, with a contract to provide chemical management services (CMS). In 2007, Quaker was awarded a CMS contract renewal that was structured in a way that encouraged the chemical manager to look beyond strictly chemical savings; it allowed the chemical manager to go after process savings as well.
This led to Quaker’s participation in a GM training around technical problem-solving and subsequently, a Quaker staff person using the GM methodology to identify the source of the contamination and how to stop it. The effects were dramatic and nearly instantaneous. The financial benefits of this project amounted to over $800,000 annually. In addition, significant environmental and personnel benefits were realized through reductions in chemical use, waste, overtime, downtime, and odor.
Read the article.
CMS Training Program launches: May 20-22, 2008 in Pontiac, MI
We are pleased to announce the launch of our first CMS Training Program this spring! Please join us for this intensive three-day program, designed to help professionals develop their capabilities in areas related to comprehensive chemical management. Instruction is led by Ithaca College professor and 30-year manufacturing veteran, Joe Sprangel, with several sessions featuring CMS practitioners and industry experts. The program also has a focus on developing the leadership, organizational and communication skills of CMS professionals. To view the course agenda and outline, download the brochure. For more information and registration, contact Laura Wolfson or visit the website.
12th Annual CMS Workshop: November 12-14, 2008 in San Francisco, CA
Join us for our 12th Annual Chemical Management Services Workshop on November 12-14, 2008 at the Hilton San Francisco Financial District. Registration and a draft agenda will be available in early June. Visit our website for periodic updates.
New CMS Case Study: Stanford Linear Accelerator Center
The CMS program at Stanford Linear Accelerator Center (SLAC) was launched in August of 2005. Savings have been realized in material purchase costs, inventory carrying costs, MSDS management, EHS labor, and annual hazardous material inventory activity. For more detail on program benefits, overcoming barriers, and the future of the program, read the case study.
The Jordan Company, L.P. has teamed with the management of Haas TCM Inc. to form Haas TCM Group Inc.
Haas TCM Inc. and its subsidiaries, Kemfast Aerospace Group, Ltd. and Kemfast, Ltd (collectively Kemfast) and its MC Technologies division have combined with an affiliate of The Jordan Company, L.P. to form Haas TCM Group Inc. An existing portfolio company of Jordan, ICMS Holdings, Inc. (d/b/a Avchem, Inc.), will be integrated with Haas TCM Group Inc. The focus of these businesses is to provide chemical management services on a global basis to a wide range of industries including aerospace, automotive, electronics, health care and other markets, as well to government agencies such as the U.S. Defense Logistics Agency. The combined businesses achieved revenues of approximately $300 million in 2007 and create the largest global provider of chemical management services. Read the press release.
Haas TCM forms Haas TCM Singapore Pte Ltd.
In February 2008, Haas TCM formed Haas TCM Singapore Pte Ltd. The company has established a chemicals hub in Singapore and has begun CMS activities with existing enterprise customers in the aerospace market sector. Haas TCM also was an exhibitor at the 2008 Singapore Air Show having been selected to be a part of the contingent sponsored by the USA Commercial Service (the business development section of the US Customs Service).
Rinchem opens customized warehouse near Austin, Texas
Rinchem Company, Inc. has opened a customized, temperature controlled warehouse in Buda, Texas. The new warehouse is located a short distance from Austin and is designed to meet the needs of the area’s growing high-tech sector. The new facility has 42,000 square feet of warehouse space and is set up to handle segregation and temperature requirements associated with the safe storage and handling of regulated and non-regulated chemicals and gases. Read the press release.
IHS Inc. acquires Dolphin Software
Dolphin Software has been acquired by IHS Inc. (NYSE: IHS – www.ihs.com). IHS has been in business for nearly 50 years, providing critical information and insight to governments and companies in a broad range of industries in 180 countries. IHS customer product and service solutions span four major areas of information: energy, environment, security and product lifecycle. Read the press release.
Quaker Chemical Corporation cited in a new business book
Quaker is cited in a new business book titled Value Merchants, written by James Anderson, Professor of Marketing at the Kellogg School at Northwestern University, and James Narus, Marketing Professor at the Babcock School at Wake Forest University. The book is published by the Harvard Business School Press and is available from Amazon.com.
Chemico receives GM’s Environmental Excellence Award
Surrounded by an array of General Motors vehicles on the floor of the North American International Auto Show, GM recognized 12 suppliers for their contributions and performance in 2007. Chemico Systems, Inc. is among a select group of suppliers who GM recognized for its outstanding achievements, receiving an Environmental Excellence Award. Read the press release.
Haas TCM earns Boeing Performance Excellence Award
Haas TCM, based on outstanding achievement, has earned recognition as a Boeing Performance Excellence Award recipient for 2007.
General Motors extends early lead in developing a green supply chain
Purchasing
In 2003, GM partnered with the EPA to create the Suppliers Partnership for the Environment, a nonprofit organization designed to let automakers engage all levels of suppliers in the development of common-sense approaches to reducing environmental impacts. One of GM's smaller chemical suppliers went through one of the Partnership's "lean and green" workshops. As a result, they were able to reduce the use of about 10,000 pounds of hazardous material a year. They were also able to reduce their solid waste by about 15,000 pounds a year. "They also reduced their energy and water usage, which led to additional savings," states Pat Beattie, director, chemical risk management in GM's Environmental Services department. Read the article.
REACH Update
Doug Lockwood, Senior Consultant, WSP Environment & Energy
The European Union’s (EU) Registration, Evaluation, and Authorisation of Chemicals (REACH) regulation is driving significant changes, not just to the chemicals industry, but to all industries that use or process chemicals. Organizations are being affected throughout their supply chains, including chemical manufacturers, distributors, formulators, companies which manufacture components and products, and retailers selling consumer goods. This article provides insights into regulatory interpretations of REACH, the SVHC candidate list to be published by the end of the year, potential supply chain impacts, and opportunities for CMS providers to provide business value to their customers. Read the article.
Survey: North Americans are Least Prepared for REACH
Chemical Week
Firms have less than three months until the start of pre-registration for the EU’s REACH law, but 40% of companies still have “limited awareness of the regulation,” according to a survey by PricewaterhouseCoopers (PwC; New York). Firms based in North America were found to be least prepared for Reach, behind Asia/Pacific and European companies. Chemical firms were the most prepared, however, followed by the pharmaceuticals sector and industrial manufacturers, although the automotive industry “appears to be particularly unprepared to implement Reach,” PwC says. Read the article.
(Note: You must subscribe to Chemical Week to gain access)
U.S. Firms Brace for REACH Backlash
Chemical Week
U.S. firms are working through industry associations, consortia, and customer-supplier negotiations to figure out how best to streamline compliance efforts for the June 1 deadline for the REACH law. However, Reach’s biggest impact could come in several years if “Reach-like” laws take root in the U.S., say some industry executives and academics. There already have been discussions among some state regulators about state-versions of REACH in California, Minnesota, and Massachusetts, sources say. Read the article.
(Note: You must subscribe to Chemical Week to gain access)
Texas Instruments turning to distributors for chemical management services
Purchasing
For Bryan Vonfeldt, manager of chemicals and gas procurement for Texas Instruments (TI) worldwide, distributors are an important, even vital part of his chemical purchasing. And he relies on them for many specific capabilities. According to Vonfeldt, one of the newest value-added services, offered primarily by larger, traditional chemical or gas distributors, is often referred to as TGCM (total gas and chemical management) services, a combined "one stop" approach to handling the broad set of chemical and gas materials and services required for the electronics industry. Read the article.
Green Chemistry: New Routes to Tackle Emissions
Chemical Week - Cover Story
The chemicals industry historically has been permitted to release thousands of m.t./year of carbon dioxide (CO2) and other green house gases (GHG) into the environment from manufacturing plants at no financial cost. That is starting to change, however, with the emergence of climate change regulations, including emission trading schemes, which are making companies financially liable for their CO2 emissions in certain regions of the world. Read the article.
(Note: You must subscribe to Chemical Week to gain access)
California to Probe Development of 'Green' Chemicals
Los Angeles Times
In an effort to reduce industry's reliance on toxic compounds, state environmental officials have laid out a framework for transforming California into a leader in the development and use of "green" chemicals. The proposals are an attempt to change the approach to environmental health from a chemical-by-chemical squabble to a wholesale shift in the way industry manufactures compounds used in products. State officials are developing initial ideas for spurring innovation that could lead to nontoxic substitutes for many of the thousands of chemicals on which industries rely. The strategy, if adopted, would be the first in the nation.
New Book on “Chemical Leasing”
Chemical Leasing is another chemical services business model within the sustainable management of chemicals. This book contains detailed descriptions and evaluations based on existing chemical leasing projects in Austria, Egypt, Russia and Mexico in a broad range of sectors and companies. The book also contains political and scientific interpretations and analyses, as well as an examination of the connection between Chemical Leasing and REACH. The book, entitled “Chemical Leasing Goes Global: Selling Services Instead of Barrels: A Win-Win Business Model for Environment and Industry”, was initiated by UNIDO and Austria’s Federal Ministry of Agriculture, Forestry, Environment and Water Management and is available for purchase from SpringerWienNewYork.
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Founding
Member
 Haas
TCM
Members
Airgas, Inc.
Avchem
The Boeing Company
Castrol
Industrial North
America
Chemico
Systems
Chrysler
Corporation
Coolant Control, Inc.
Dana
Corporation
Delta
Air Lines
Dolphin
Software
EPCglobal
General
Motors Corporation
Henkel
Chemical Management
Houghton
International
Illinois
State University
Illinois
Waste Management
and
Research Center
Ithaca College
Lockheed Martin
PPG
Industries
Quaker Chemical Corp.
Raytheon
Company
Rinchem
Company, Inc.
Rockwell
Collins
SAIC
Seagate
Technology
Society
of Tribologists and
Lubrication
Engineers
United
Technologies Corp.
2008
Event Highlights
CMS Forum members and the Chemical Strategies Partnership speak at or participate in many conferences each year. A list of 2008 conferences of note include:
Joint EFCOG/DOE Chemical Safety and Lifecycle Management Workshop
March 4-6, 2008
Washington, DC
Getting Fit For REACH: Applying Chemical Leasing
March 6-7, 2008
Balatonfüred, Hungary
18th Annual Cleaner, Sustainable Industrial Materials & Processes (CSIMP) Workshop
March 17-20, 2008
San Diego, CA
LogiCon 2008
Sustainability Summit
March 25, 2008
Las Vegas, NV
Aviation Week: MRO 2008 Conference
April 15-17, 2008
Fort Lauderdale, FL
Socially and Environmentally Responsible Supply Chains: A Source for Innovation Conference
April 22, 2008
Stanford, CA
Training Workshop on EPA's Sustainable Futures™ Models and Methods
April 29 – May 1, 2008
Chicago, IL
2008 Joint Services Environmental Management Training Conference & Exposition
May 5-8, 2008
Denver, CO
CMS Training Program
May 20-22, 2008
Pontiac, MI
The 12th Annual Green Chemistry & Engineering Conference
June 24-26, 2008
Washington, DC
Campus Safety, Health, and Environmental Management Association (CSHEMA) 2008
July 26-30, 2008
Saint Louis, MO
LogiChem 2008
September 22-25
Atlanta, GA
NAEM's 16th Annual EHS Management Forum
October 22-24
Memphis, TN
12th Annual CMS Workshop
November 12-14, 2008
San Francisco, CA
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