The organogram of Teijin Aramid B.V. lets see that Teijin Aramid has three facilities in the Netherlands. These are being lead by the CEO (Chief Executive Officer) if Teijin Netherlands.

Appendix I Organogram Teijin Ltd.

The first figure of this appendix represents the many divisions where Teijin Group Limited is operational in. Teijin Aramid Emmen is the fourth layer in the hierarchic structure. Under every business group fall a number of sub-groups. The only division that is highlighted for the purpose of this paper is the High Performance Fibres Business Group. Teijin Aramid Emmen (FDQ) is part of this division.

Figure I.1, Organogram Teijin Limited

The organogram of Teijin Aramid B.V. lets see that Teijin Aramid has three facilities in the Netherlands. These are being lead by the CEO (Chief Executive Officer) if Teijin Netherlands.

The CEO is also part of the management team located at Arnhem. Furthermore the three divisions of Teijin Netherlands are being controlled by one production manager, the CEO production. Teijin Aramid Emmen has two general managers, one for FDQI, the spinning facility and one manager for the after treatment or converting, done at FDQII.

Figure I.2, Organogram Teijin Aramid Netherlands, focussed on the Emmen plant

What has become apparent from observations in combination with scientific literature is that FDQ has a relative horizontal organisational structure. Examples of horizontal structure characteristics are according to Daft (2001):

• Structure is created around cross-functional core processes;

Appendix II Extended Production Process

The extended production process is depicted below. The simplified production process in paragraph 1.4.1 explained that the process can be broken down into four production steps:

preparing polymer, spinning, washing and drying. In turn these generic steps can be broken down into more detailed production steps which will be described in this appendix.

Figure II, the graphical representation of the entire production process.

In the beginning of the production process the sulphuric acid, an oily liquid, should be mixed with the PPTA, a powder. An oily-liquid and a powder do not mix well together so the sulphuric acid is being frozen to a sulphuric acid powder with the help of Freon

¹

(Schenkels, 1994). These two powders are mixed together in a mixer so that the powders resolve in each other. In the mantle of this mixer flows the chemical glycol which cools the solution down.

The output of this mixer is a sandy spine substance, which is transported to a residence time machine in order to let the dissolvent ripe. This machine also has the function of transporting the substance and act as a buffer. From there on it is being led trough a sieve that filters the chumps that are still left in the substance.

The substance then runs through a weighing tank that measures out the substance and guides it through a couple of dose screws into the kneading machine.

²

Through the mantle of the kneading machine flows water of 120 degrees, that heats the substance. The substance, that has reached a temperature of 92 degrees, is than put under pressure by a booster pump and led into the central filter. These steps describe the preparation of the polymer solution. The melted and filtered spun substance is then transported from the central filter and run by the spin pump that measures out the substance.

Then the most important part of spinning process is going to take place, the melted substance in run through the spinning nozzle, which arranges the macro molecules, and makes the elementary yarns. From there on the yarns are run through an air gap, which improves the orientation of the filaments by 600 to 800%, into a coagulation bath that removes most of the sulphuric acid. The coagulation bath is part of the coagulator that also cools and forms a solid yarn. This step in the process called the spinning process.

The solid yarn which is vertically being spun is led into the horizontally oriented washing street. Through a series of steps the yarn is being washed to obtain a wet but sulphuric acid free Twaron yarn (see subparagraph 1.4.2). The wet Twaron is then, depending on the product specifications, finished with a coating or finish. This is done in order to add specific product characteristics, but also to make sure that the Twaron does not get stuck on the driers.

The wet Twaron fibre with the special finish is then being dried on the dehumidifying driers.

This machine also has the purpose of laying down the crystal structure. And also when the yarn is dried a finish can be put on, in order to obtain the right handling characteristics.

Through a series of transport rolls the Twaron is being brought under the right tension. Then the final step in the production process is being initiated, the Twaron is wound up on a coil.

When the yarn has the right length the coil is being withdrawn from the process, checked, put in a box and placed on a pallet with several other accepted coils.

A test sample is being taken from the finished Twaron batches in order to check the quality.

Every box, containing coils from 4.5 to 10 kilograms in weight, is being labelled and put on a

pallet. The pallets are transported to an intermediate storage, where they await to be sent to

the customer. The pallets do not stay long in this storage since the demand for Twaron

exceeds the supply. In fact for the coming year, year and a half the production of Twaron is

on forehand being sold and planned in by FDQ. Also the Sulfron factory, which is at this

Appendix III Sulphuric Acid Retrieval Process

Figure III in this appendix represents the secondary process mentioned in paragraph 1.4.2.

The purpose of the secondary process is to recycles the diluted sulphuric acid up to 96%

concentrated sulphuric acid that can, together with the Oleum24, be used again in the beginning of the process.

Figure III, The secondary process of retrieving a diluted sulphuric acid and generating 100% sulphuric acid.

The golden line in this flow diagram represents the production of Twaron. From the moment the Twaron comes out of the coagulator it is being run through a washing street. The washing street has the function of deprive the sulphuric acid from the Twaron yarn. A lot of water is being used in this production step. And when the Twaron is being washed the washing water contains traces sulphuric acid.

In order to separate the water from the sulphuric acid the washing water is being transported from the spinning bath to MVR (Mechanical Vapor Recompressor) evaporator. Here the diluted sulphuric acid is being concentrated to maximum of 22% percent. Subsequently the 22% sulphuric acid is being transported to one of the five the Bertram evaporators. Here the diluted sulphuric acid is being distillate into water and 78% concentrated sulphuric acid.

The final step in concentrating the sulphuric acid is done in the Plinke evaporator. The Plinke can concentrate the 78% sulphuric acid one more time to a concentration of 96%, usable in the beginning of the process. The water that is being evaporated out of the sulphuric acid is being used again in the washing street. This means that this process re-uses a lot of their fluids.

But what also is apparent is that an excess of sulphuric acid is being produced, since Oleum24 is being brought in the process.

Before 2003, when the Plinke was not taken in production, FDQ had to sell its 78%

concentrated sulphuric acid. This 78% sulphuric acid is not commonly used and asked for by

the market; therefore this was an insufficient way of using sulphuric acid. With the

installation of the Plinke, this problem was being solved and also the process itself became

much more efficient.

Appendix IV Research Model Building

Energy Managers should consider themselves to be innovators and draw lessons from theories of the management of innovation (Fawkes, 1983). The research model is build up according to the literature of Verschuren en Doorewaard (1995). They suggest when building a research model by executing seven steps, which will be carried out for this energy problem situation.

1) State the purpose of the research objective in one or two words:

Energy Propositions

2) Define your object of research:

The investment projects/process within the Teijin Aramid Emmen.

3) Define the nature of the research perspective (highlights researcher’s point of view):

In this situation there is going to be dealt with a change oriented research. But the project also goes in the direction of a design oriented research, since the energy topic is a new subject within the process of investment approval.

4) The research perspective is being developed with help of study of the scientific literature:

*Core Concepts: *Theoretical framework

1) Group Decision Making Group Decision Making Theory

2) Technology Roadmapping Theory about Technology Roadmapping 3) Good housekeeping Theory available at Teijin Twaron

4) Strategic Change Management Theory about Strategic Change Management 5) Critical Success Factors Theory about Critical Success Factors (CSF’s) 6) Project Management Theory about Project Management

5) Visualize the research model, while using the principle of confrontation:

The model represents how the research itself should be undertaken.

6) Verbalize the research model in such a way that it is an elongated reasoning.

Analyze how the energy topic can be imbedded in the road to an investment decision, based

on relevant scientific literature and the interviewing of the stakeholders involved, whereby the

human effects, specific implementation criteria, the management of projects and the

Appendix V Production of Twaron and Energy consumption of FDQ

This appendix shows the production of Twaron from 1999 until 2006. And it also presents a prospect of the energy use and production for the coming two years, in order to elucidate the need to reduce energy consumption. As can be seen in the figure, from 2002 the production of Twaron has only been increasing in a steady line. The estimate for 2007 is a total production of 33217 ton of Twaron.

Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Prospect Ton production 100% 110% 112% 107% 134% 153% 170% 183% 210% 211% 224%

Energy Costs 86 105 121 233 247 240 250 412 393 433 473

Prospect Energy Costs 100% 122% 140% 270% 286% 277% 290% 477% 455% 501% 548%

Table V, the increase in production and energy costs from 1999 - 2007

Table V presented in this appendix shows how the increase in production and energy costs from 1999 until 2007 in percentages and it also shows the prospect for 2008 and 2009. The prospect is that the production of Twaron will only increase as long as the competitive advantage does not come under pressure. Therefore the energy consumption related to the amount of production will also increase.

Figure V shows that the steep increase in production output from the year 2002, until now.

The increase in production is mainly caused by the high demand by the US Military on protective cloths. As mentioned throughout the paper Twaron is sold out for the coming 1.5 years and competitors are eager to get a share of that demand. So in time there will probably be some shifts in the market, see also the next appendix.

Figure V, The rising energy prices endured and the still rising production of FDQ.

The fact that the production is rising as well as the oil price has a double impact on the endured energy costs of FDQ. But the rising oil price has also a significant impact on the raw materials used for the production of PPTA. This will have in the future its impact on the transfer price charged by Teijin Aramid Delfzijl. The prospect of a higher transfer price and a higher internal cost price will probably result in a higher cost price for the costumer of Twaron, which will in time harm the competitive advantage.

Production/Year

0%

50%

100%

150%

200%

250%

1999 2000 2001 2002 2003 2004 2005 2006 2007 Year

% Ton Production

Energy Costs/Year

0,00 50,00 100,00 150,00 200,00 250,00 300,00 350,00 400,00 450,00

1999 2000 2001 2002 2003 2004 2005 2006 Year

Sum of Energy Costs (€)

Appendix VI Five Forces Model and the Product Life Cycle Phases VI.1 Porter’s Five Forces Model

Chapter 3 described the forces and influences Teijin Aramid Emmen has to consider when conducting business. Both the internal and external forces where discussed. In order to graphically represent which forces have an influence on the rivalry in the business, the five forces model of Porter (1985) is being applied. The model is represented below, figure VI.1.

Figure VI.1, Five forces model of Porter (1985) adapted from Olve, Roy & Wetter (1999)

Although the business of Twaron is still growing (see appendix V) changes are taking place in the market. According to Porter (1985) there are four elements, potential entrants, buyers, substitutes and suppliers that can influence the rivalry among competitors and thereby determining industry profitability. The threat of new entrants clearly exists; Kolon and Hyosung are new players on the market with the respectively the same and a substitute product. Regarding the customers of Twaron, the buyers, they do not have that much bargaining power, since the demand for Twaron is still high.

The third force in the model is the threat if substitute product and services. There are a number of substitute products for Twaron. To begin with Dyneema that is being produced by DSM. Dyneema is polyethylene fibre and can is some cases be for same purposes as Twaron.

However a lot of other characteristics Twaron has, like high elasticity and heat resistance Dyneema does not have. Lycocell is a substitute product that is mainly used for tire applications and produced by Hyosung. Heracron produced by Kolon and Kevlar produced by DuPont are both substitute products with the exact same chemical structure

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But Teijin Aramid Emmen has a positive bargaining power when it concerns the smaller suppliers or production supporting machines or processes. Spare parts used in pumps for example are not subject to the sulphuric acid constraint. In this case Teijin can choose from a number of suppliers which is for advantage for the bargaining power.

The overall conclusion is that the competitive environment of Teijin Aramid is changing. And also the rising oil prices are affecting the competitive advantage. These two facts together with the other forces mentioned in chapter 3 stress the need for change beginning with the energy consumption. This information will be used to position the Twaron product in the product life cycle.

VI.2 Twaron and the Product Life Cycle

What the influences of these emerging forces are and what that means for the product Twaron is graphically presented with the product life cycle phase (see figure VI.2). As can be seen, Twaron is going towards the maturity phase. This is because of the need to reduce costs;

during product maturity phase organisations undertake intense efforts to reduce costs to remain competitive (Atkinson, Kaplan & Young, 2002).

One part of realizing energy reductions at FDQ is of course saving costs. When project members select the most appropriate alternatives that help reduce the energy consumption level or only marginally contributes to the energy consumption. Than the saved energy consumption directly contributes to the profit made.

Figure VI.2, product life cycle phases, adapted from Crawford & Di Benetto (2006)

Figure VI.2 shows that Twaron is still in its growth phase and moves towards a maturity phase. The Twaron business is still growing due to the war on terrorism and the use in tires.

But what was made evident by Porter’s five forces model is that the competitive environment is changing. More competitors are entering the Twaron market and they all want a piece of the growing Twaron pie. The result is that Teijin Aramid will lose some of its market share.

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Appendix VII Initial Project Process Flow

This appendix represents the process flow and how projects are being conducted at FDQ. The process flow represented in figure VII was one of the earlier initiatives, before Business Wide Projects, to graphically represent the process flow of a project. The purpose of this appendix is to see how several projects can be initiated. There are basically three starting point from where a project can originate; the VTW or alteration proposal, the necessity to replace a machine, part or process and the implementation of a new technology.

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Figure VII, An early initiative to graphically represent how project can originate and lead to a project.

Appendix VIII Analysis on the Time and Influence of Stakeholders

According to the de Leeuw (2002) can a stakeholder be categorized by means of two variables; nature and size of the stake and nature and size of the possibility to influence. De Leeuw (2002) in his book uses two tables to categorize the stakeholder by means of the two variables. It is suggested by him that these kinds of simple tables it is possible to obtain a accurate insight in the position of a stakeholder. Two matrices used and presented in table VIII.1 are derived from the ones suggested by de Leeuw (2002).

little much same more

Beginning A B Beginning A B

During C D During C D

At the end E F At the end E F

After start-up G H After start-up G H

Time Influence Currently Time Influence Future

Table VIII.1, Stakeholder influence and the possibilities to influence matrices (de Leeuw, 2002).

The left table categorizes the current position of the stakeholder and the right one is used to identify the future position. The terms used in this table will be elucidated. Time has to do with when the stakeholder can influence the project. There has been made a distinction between in the beginning of a project, during the project, at the end of a project and after the project has started up. How far you have to look into the future depends on the duration of the process (de Leeuw, 2002). Looking at the average time it takes from the initiation phase up till the evaluation phase there can be concluded that an investment process has a duration of between three months and more than one year.

³

The influence on a project in relation to the interest or stake the stakeholder has in the process also of importance. A stakeholder can serve, harm or do both to the road of the project process.

It is therefore important to make a distinction between the influences the stakeholder has in a specific time category. In this case there has been a distinction made between little and much influence. For each identified stakeholders in the stakeholder analysis, see paragraph 4.4.2, the time and current influence as well as the time and desired influence in the future will be determined.

The influence of Emmtec is currently very little and if there is any it is around the time the project gets started up.

⁴

Emmtec should have a larger stake in the beginning of the project, since they know what advantages an energy source might have over another. The project owner is appointed when the machine is taken in production. But from then on he has little influence on the projects although his stake in the saying about energy can be great. The government has in the beginning of the investment process a stake, because then the permits if necessary are being granted. But the influence of the government from then on is minimal.

Projects team members are being involved in the project almost right at the beginning, they have a lot of influence since they report about the feasibility of the project. The machine supplier plays a role in the second part of the investment procedure, when the machine is being designed. His influence on the second part can therefore be of importance. The supplier knows about the ins and outs of the machine to be supplied. If FDQ would demand a less

3

There are three routes to be considered, namely VTW, New technology and Replacement or Other. The duration of the investment process depends on the route. An average of these is taken to identify the time an investment process takes. The average is objectively being obtained by asking employees of FDQ.

4

From an interview with an Emmtec employee.

energy consuming alternative, the supplier would probably know how to realize this. This does not only apply to new investment, but the opportunity also lies in the current process. If energy modifications are realized in the existing process, without tampering with process output or other critical process criteria, simple modifications could all add up to significant realization of energy reduction. The stake the management has is greatest in the beginning of the project, when authorisation has to be given at the end of the phases. Management has therefore a lot of influence on the investment process and can make an issue, like energy, a critical factor in the investment procedure.

Purchasing has contact with the several suppliers and could be of importance for the contact with other new supplier who might have less energy consuming technologies developed.

Currently purchasing does not go that far as just described. The supplier selection by purchasing is momentarily done on the basis of three criteria, namely proved technology, the available time, provided quality (and related costs). The last one does not reflect the endured cost in the product life-cycle, but purely the purchasing cost and quality delivered. So purchasing influence at the moment is minimal, but should be of greater importance. A summary of the time and influence the stakeholders currently have is given in table VIII.2, below.

Emmtec Project Owner Government

Project Team Members Machine Supplier Management Purchasing

C B C B Time/Influence

B D A

Currently Wanted in Future

E A G Time/Influence

D E D E

Table VIII.2, the current position of a stakeholder and the desired position of a stakeholder

Table VIII.2 is also used in the paper itself in paragraph 4.4.3, only in a more comprehensive way. The alphabetic numbers are replaced by the terms used in table VIII.1. For example the letter G, instead of using this alphabetic letter the table in the paper states “after start up” and

“little”. This thus means that the time when the stakeholder as an influence of the project is

after the start up and that the influence the stakeholder has is little.

Appendix IX Detailed Process Analysis

This appendix will give a complete analysis of the phases that are being undertaken in a project. Each phase will be detailed out in order to fully understand what the key process characteristics are.

IX.1 Pre-study Phase

The pre-study phase, which is shown in figure IX.1, is for a great deal already being explained in paragraph 4.3. A brief summary will be given from where a project can initiate. To start with the project initiation that leads to a

replacement or other project. This can originate from internal process factors, for example a technologist can recommend process enhancements and improvements.

Another example is a replacement because the machine has simply worn down, but a replacement project can also initiated simply because a machine is depreciated/written of.

A new technology can originate from changes in the competitive environment and market.

Research & Development and Marketing can have a large stake in the initiation of such a initiative. R&D comes up with the ideas that can be implemented and marketing can bring new customer specifications which can lead to new technologies that in turn can be developed by R&D. An employee from FDQ itself can come with up an improvement idea, which is called a VTW. A VTW commision evaluates the neccesity of the idea an votes wheter it should be inititated or not.

For every project a projectplan should be prepared. In the project plan is being determined what the scope of the project is, what the planning of the project, how the projects costs are estimated, how project progress is being reported and who is involved in the project organisation. An important aspect of a VTW projectplan is that HSE aspects are being dealt with in a separate paragraph. These aspect get therefore a lot of attention. Not only because they are related to government regulation, but also because they are simply being mentioned.

As said before in the paper the enery issue should also be incorporated in the VTW form.

IX.2 Initiation and Definition Phase

When the initiation phase commences, the process of a project gets categorized based on what the investment approximately costs and in what category (e.g. capacity increase, new products or health, safety and environment) the project falls, see figure IX.2.

Before the beginning of initiation phase a project coordinator and a project leader are appointed. The idea description is being worked out by them. For the larger projects, there is being verified if the project aligns with the strategy of Teijin, if there is an expected market volume, what the competitor does and if there are patents to be generated with the project.

And also what HSE implications could the project have. When these criteria are all

inventoried there is being decided if the project should proceed or be discarded.

When the project is approved, the definition phase is being entered. At the beginning the project team and a steering committee are appointed. In this phase the project becomes a bit more solidified, a time to market as well as the product properties have to be worked out by marketing. When there has been

checked if the new project can be done within the current process or if FDQ has the technology and product know-how, marketing sets the current cost price and sales price.

R&D than gives a first estimates about the development time up till the realization phase, thereby also give a cost estimate with an accuracy of -15/+30% deviance.

The results are than presented in the project plan. The objectives and key deliverables are being mentioned in the project plan. But what is more

important is that the project plan also requires also a listing of the resource and boundary conditions. Setting these conditions is based on six pillars, namely money, organisation, quality, information, time, HSE and permits. In the project plan the first steps become solidified and this document forms the basis for further working out the project.

The decisions made in the project plan have thus a major impact on future decisions regarding energy topic. The pillar information should become one that foresees in the necessary energy information. The internal energy information is being constructed by the energy technologist, who analyzes the energy streams of FDQ. When the project plan is approved there are experiments done and alternative options being studied. At this point in time alterations may have occurred from the original proposal. So the product should be evaluated by marketing based on its new properties and its feasibility.

When the properties have been evaluated the next step is to check the patent situation. The project should be evaluated on the possible patents submitted and patents of competitors that could stand in the way of the project. At this stage of the process the HSE (Health, Safety &

Environmental) aspects of the new product/technology are being considered and evaluated.

When all these aspects from the project plan until the now are approved, a sampling test is being done by marketing. When the sampling test has become a success, another millstone has reached and the project can continue by doing experiments on al larger scale.

The potential scale-up problems are being exposed and a mass- and energy balance is being

produced. A mass balance in this case describes the number of PPTA needed in the process,

what flows out the process and what quantity of Twaron being produced by the process in a

certain time. The energy balance describes the total change in energy consumption of the

system. This is an important step to be taken. But what is more important is that knowledge

The next step is checking the feasibility in production; this is mainly coordinated and evaluated by production and technology, since they have knowledge of the day-to-day operational process of the production plant. Thereafter the location of the production line is being determined as is the process equipment and a process route is being selected. At this point in time extensive research should be done about the possible usable energy alternatives mentioned in the project plan and what the energy source impact is on future business.

Because some projects require new equipment, the stakeholder purchasing should inform the FDQ project team about new technologies and capabilities existing with suppliers. At the end of the definition phase a first cost estimate is being given and the project is economically being evaluated based on discounted cash flows (DSF) technique.

At the end of the definition phase a feasibility study report should be delivered. The feasibility study report consists, just like the project plan, of a couple of decision pillars. Basis of design, decision proposal for process route, market plan, financial evaluation and a project planning are all being specified. Specifications that were selected in the project plan become thus more solidified. For instance capacity issues are being specified, HSE aspects are being charted and the process lay-out is mapped out. This means that energy decisions should be made in the project plan. The feasibility study report elaborates on the project plan, so the right energy related decisions should be made at this point in time. The financial evaluation that is being done, should have an accuracy of approximately -15/+30 percent. When the project is considered feasible a “GO” is granted by the management and the project subsequently enters the design phase.

IX.3 Design, Realization and After Care phases

The design phase starts a scope evaluation. And when the project concerns a new technology, the volume needed is being consulted with the customer. Once the proceeding steps in the definition phase have been taken,

testing on pilot or commercial scale can begin in the design phase. There will be tested on the process ability of the product or the new machine performs in the process. When it concerns a new technology then there is being tested on the process ability of the technology itself.

Subsequently the project gets evaluated on its impact on the product. If the product does confirm to the wishes of Teijin then there will be sampled for commercial testing, if not than

product characteristics have to be altered. Once insight has been generated of the process, analytical tools for the process and the product, if needed, can be developed. In that way characteristics of the process and product are being made measurable. The customer feedback is an important key deliverable since the product has to meet the requirements of the customer.

It is obvious that for a small VTW and a replacement or other investment, customer feedback

is not necessary. But it is necessary to evaluate the process ability and product characteristics

when the project concerns a VTW, replacement or other. This is because the process of making Twaron is very sensitive to small changes of the process. When the product has met the customer requirements, marketing gives an estimate about the time to market and expected market volume. Also the preliminary product specifications are being drawn up.

Then an important key deliverable is should be generated, the process design.

The process design consists of a Basic Engineering Package (or BEP). Where the feasibility study report should have an investment cost estimate accuracy of -15/+30%, the BEP should have a cost estimate accuracy of -5/+10%. To achieve this a lot more process characteristics have to be worked out in detail. For example process flow diagrams and piping and instrument diagrams (P&ID’s) have to be drawn up. And also the technical specifications have to be worked out. Characteristics about the environment and health and safety issues are also being dealt with in the BEP. The BEP consists thus of an evaluation and layout of the process and the impact the process itself has on process related issues like people and planet.

Once the BEP has been worked out a preliminary market introduction will be initiated at the end of the design phase. At the end of the design phase there is also an investment application form being presented to the management. This investment application form contains a summary of the project’s characteristics. Management has to evaluate and sign their approval.

Once all the signatures of the management team are on the investment application form the project is approved and can “GO” into the next phase, the realization phase.

At the beginning of the realization phase there is being started with a scope evaluation. There is being checked if the project scope has not changed or if some changes have to be made.

After this scope evaluation the product will be introduced in the market. Engineering, Procurement and Construction issues are further being detailed on topics like planning, risk analysis. The project gets also evaluated by a detailed Hazard and Operability (HAZOP) study.

Subsequently the process conditions are being fine tuned and the SAP system is being upgraded. SAP is an Enterprise Resource Planning (ERP) Package which basically stands for an integrated information and control system.

The next step is for purchasing to select the suppliers needed for the implementation of the project. For some projects like a new spinning line personnel needs to be trained or hired. At the end of these steps the mechanical completion document is the next milestone. The mechanical completion document includes a CE certificate and a punchlist. A CE certificate is given to processes and products that apply to the guidelines set by the European Union (EU).

Once the product or process has obtained its certificates a punchlist is being set up.

Subsequently the process in case of a new technology is being commissioned and started-up (CSU). The key deliverable in this step is an operational plant including all documentation.

The CSU document consists for example instructions for the personnel. There will also be

checked if the product quality still satisfies the specifications set. At this point in the project

all the decisions made have become solidified. When the reports about the capacity, product

quality and process quality have drawn up, the project can be handed over to production. This

is the point where the project owner plays a significant role. The project owner implements

The after care phase begins with taking care of the punchlist items mentioned earlier. The handling of these punchlist items may have an effect on the quality and capacity. This is why the next step is to once again report on issues like capacity, process quality and product quality. Afterwards the process control limits are being set. The after care phase ends with a report on the final product specifications, this can be seen in figure 15.

IX.4 Evaluation Phase

The evaluation phase is done after the project is taken in production. The evaluation part of project is currently done by management. The project gets evaluated on items like HSE, project costs, project organisation, project quality, project information and project planning.

One year after the project is taken in production the management evaluates the objectives which were set in the beginning of the project.

Since most of the projects are one of a kind, the criteria set only apply for a specific project. It is therefore difficult to determine how the energy reducing actions contribute to the combined effort. What can be done is making solid energy decisions founded on both internal and external information and set energy measures on a company level. This ensures that management is committed to the energy reduction effort. And it also ensured that management can place an

emphasis on the need to reduce energy. The first time in the project when energy decisions become visible is when the mass- and energy balance is constructed. This means that decisions have to be made in the project plan.

.

Appendix X The Overall Graphical Representation of the Project Process

This appendix graphically represents the entire project process described in the previous Appendix IX.

Figure X, the project process flow

Appendix XI Team Roles appropriate for Business Process Re-engineering

The process of implementing and creating energy awareness and reduction through the investment process is a business process reengineering (BPR) project. And BPR inevitably means making changes in the working lives of the staff involved (Launonen & Kess, 2002). In business process reengineering, it is assumed that team members are required to have a diverse variety of roles in order to complete there task. Launonen & Kess (2002) define eight distinct roles in a business reengineering project which are represented in table XI. There are four roles which represent outward-looking characters whose principal concern and orientation is to the world outside the group and four roles which represent inward-looking members who are principally concerned with the relations within the team.

Team Role Role Characteristic

Innovator Thinks up and proposes new ideas.

Individualistic and clever but may need careful handling to provide the vital spark.

Resource Investigator Brings information and ideas from sources outside the group. Friendly and gregarious, with masses of contacts, they prevent the group stagnating, but can be lazy unless working under pressure.

Chair Is the social leader of the group whose skills lies in understanding what each member does best and in guiding the team towards success.

Commanding, but not domineering when the group needs to make a decision.

O ut w ar d- lo ok in g m em be rs

Shaper Has energy and drive to implement the ideas and gets projects moving. Dynamic, but possibly abrasive to people outside the group.

Evaluator Appraises proposals, monitors progress and prevents the group making mistakes. Clever, dispassionate and may appear cold and uncommitted.

Team worker Promotes unity and harmony in the group and forms and maintains an informal network of communication between group members.

Indecisive in moments of crisis.

Organiser Translates plan into manageable tasks.

Disciplined and practical, they work for organisation, but need to guard against inflexibility.

In w ar d- lo ok in g m em be rs

Finisher Makes sure the group does not waste time and ensures the group meets its deliveries on time.

Needs to avoid over-perfectionism.

Table XI, Team roles in business process reengineering (Launonen & Kess, 2002)

When evaluating at the innovator character two different members can play that role. An

R&D employee and also a technologist could perform this role. Since the R&D department is

located at Arnhem, and this research is focussing on FDQ, therefore R&D employee is not

part of an Emmen project team. But the technologist can be part of a project team and

proposes and works out new ideas that innovates the production process at FDQ. For the role

of resource investigator the members of the marketing and purchasing department can be

considered. But marketing is located at Arnhem just as R&D. The role of chair can be

fulfilled by a manager or a manager engineer who is in most case also the project leader.

For the role of shaper, project leaders are most suitable. A number of employees from different departments can be appointed project leader, see paragraph 4.3.1. For the role of evaluator a manager engineer is most appropriate, he as a project leader has the overview on the entire project. For the role of team worker, team members of different departments of FDQ can be assigned, depending on their expertise. For the organiser role again the manager or manager engineer is most suitable for this task. Finally for the finisher role the project owner exist within FDQ. A project gets handed over by the project team at the end of the realization phase. This is also the point where the project owner is assigned to start up the project and take it in production.

What is important to mention is that project owners do not get additional time for

implementation of the project. Which is why the project owner most of the time are unhappy

when a project gets assigned to them. As can be concluded every role that is needed for

business process engineering already exist within FDQ. So the foundation for implementing

and generating energy awareness is already there. But what team is most appropriate project

team that combines all the BPR team roles. One thing that has to be mentioned is that the first

time a BPR team is formed and energy reductions through teams become successful, this BPR

team should become a way of conducting business and can from that point on no longer be

classified as a BPR team.

Appendix XII The Questionnaire & Questionnaire Results

In order to get an understanding of project management within FDQ and how energy is being dealt with at the moment a questionnaire is being handed to several project members. This appendix explains how the results are being obtained. A general starting point for analyzing statistics is to determine the population to whom the questionnaire is being handed.

XII.1 Determine Population and population sample size

A population is the total collection of elements about we wish to make some inferences (Cooper & Schindler, 2003). All the elements in the population that can be questioned are called a census. In case of this research the census are all the employees of FDQ that work in projects. The total number of employees in the population that work in project teams is 55.

XII.1.1 Population sample size

Since it is likely that not all employees will return the questionnaire a sample size has to be taken. A sample size has to be large enough to be representative and a sample should bare some proportional relationship to the size of the population from which it is drawn. To determine the right sample size that is representative the following formulas are applied

⁵

;

SS = (Z

²

* P * (1-P))/ C

²

New SS = SS/ (1+ (SS-1/Population)) The characters used in both the formulas are going to be explained in table XII. The first formula calculates the sample size (SS) and the second one calculates the population needed from that sample size.

Calculation of Population Sample Size C = the confidence interval that is

tolerated.

9% When 90% of the respondents answer yes and 10 answers no, a larger error range is permitted. A smaller error range requires a larger sample size. For this survey a 9% error range is chosen, since the answers given to the questions all go in the same direction.

Z = the confidence level chosen. 95% The confidence level is the uncertainly that is tolerated.

When a confidence level of 95% is chosen, A higher confidence level requires a larger sample size.

Population = the number employees

that represent the population. 55 The number of available to pick a sample size from. For FDQ this number is 55, since FDQ has 55 employees who work in projects.

P = percentage picking a choice. 50% The most conventional choice is 50%, which means that there is an even chance of picking one of the answers.

The required population sample size = 38 There were turned in 39 questionnaires, which mean that there are enough questionnaires to be evaluated.

Table XII, numbers needed for calculating the population sample size.

Calculation of SS : SS = (1.96

²

* 0.5 * (1 – 0.5)/0.09

²

SS = 96.04.

Calculation of the Population SS : New SS = 96.04/ (1 + (96.04-1/55) New SS = 38 XII.1.2 Research Type

Since this research concerns a descriptive objective, this situation is appropriate to conduct a survey questionnaire. The questionnaire is being represented in the next paragraph.

Type of sample size : A-select test sample

Sample size needed : 38 (see previous sub paragraph)

5

http://www.surveysystem.com/ssformu.htm, consulted on 17-11-2007

XII.2 The Questionnaire

This questionnaire was handed out to the projects members who work within Teijin Aramid Emmen and thus can answer the questions related to projects and energy in projects.

Questionnaire Energy In Projects

This questionnaire has the purpose of generating insight how the energy issue is being dealt with and how project teams function within FDQ. The results hopefully will generate a deeper understanding of the energy problemacy and how it is being dealt with in the different projects of FDQ. This is an anonymous questionnaire and all the questions asked will be related to the energy issue and project management.

⁶

This inquiry is taken anonymously and distributed to employees of several departments within FDQ. The inquiry contains open questions and multiple choice statements. The multiple choice statements have to be answered by encircling what is according to you the most appropriate answer. You can return the inquiry until 9 November 2007 at the FDQT secretary room number 46. Good luck with filling in the inquiry and thank you for your cooperation.

General Open questions

1. How long do you work for Teijin Aramid? ……

2. For what department do you work? ……

(Purchasing, Technology, Production, Maintenance or Engineering & Construction)

3. What is your role within a project team? ……

(Engineer, Technologist, Manager, Project owner, Project leader, etc.)

Multiple Choice Project Questions

4. What is the average lead time of a project you

< 3 month – 3-6 months – 6-9 months – 9-12 moths – > year

participate in?

5. I see the advantages of doing work at FDQ

completely agree – agree – neutral – disagree – completely disagree

on a project base?

6. I am enough being involved in a project

completely agree – agree – neutral – disagree – completely disagree

to feel committed to the project?

7. I think that there is too little communication (mail,

completely agree – agree – neutral – disagree – completely disagree

, face-to-face, telephone, etc.) within a project group?

8. I have too little time to finish a project.

completely agree – agree – neutral – disagree – completely disagree

9. I depend a lot on the information provided

completely agree – agree – neutral – disagree – completely disagree

by my project members?

Multiple Choice Energy Questions

12. What are according to you the energy cost as a

0-5% - 5%-10% - 10%-15% - 15%-20% - 20%-25%

Percentage of the total cost price.

13. I think that energy consumption is being given too

completely agree – agree – neutral – disagree – completely disagree

little attention in the execution of a project.

14. I see much energy reducing possibilities.

completely agree – agree – neutral – disagree – completely disagree

15. I think that my department gives too little attention

completely agree – agree – neutral – disagree – completely disagree

on energy saving possibilities.

16. If you see any energy saving possibilities, would you like to mention them:

- - - -

If you have any information of which you think is appropriate for this research, it is most welcome. You can use

the box below in order to write down the notes. This information could help me see the project management and

the energy topic in a wider perspective. The notes could also generate as a welcome supplement and serve as

input for the master thesis.

XII.3 The Questionnaire Results

The questionnaire was handed out to 55 project members and returned by 39 respondents. All the answers given by the respondent were combined in the statistical program SPSS, which made the overall results visible. For each stated question SPSS provided a comprehensive table that was easy to analyze. Each table will be presented and explained in this paragraph, the related questions can be found in the previous paragraph.

In what work year category do you fall??

16 41,0 41,0 41,0

9 23,1 23,1 64,1

4 10,3 10,3 74,4

4 10,3 10,3 84,6

2 5,1 5,1 89,7

4 10,3 10,3 100,0

39 100,0 100,0

< 3 years 3 - 6 years 6 - 9 years 12 - 15 years 18 - 21 years

> 21 years Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.1 corresponds with question 1

The answers to first question in the questionnaire have been put in categories as presented by the table XII.1. This is done in order to orderly portray the results of this question. What is striking is that 41% of the employees have worked no longer than 3 years for FDQ. This is mainly because of the expansions and rapid grow of Teijin Aramid Emmen.

In which department do you work?

15 38,5 38,5 38,5

5 12,8 12,8 51,3

7 17,9 17,9 69,2

3 7,7 7,7 76,9

9 23,1 23,1 100,0

39 100,0 100,0

Technology Maintenance Production Purchasing Engineering Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.2 corresponds with question 2

Within FDQ there are mainly five departments being involved in the execution of an investment projects. From those five most of the respondents worked for the Technology department. This is not surprisingly because this is one of the larger departments within FDQ.

The purchasing department is least represented, which is also not surprisingly since this department is made up of three employees.

What is your role within a project team?

1 2,6 2,6 2,6

8 20,5 20,5 23,1

1 2,6 2,6 25,6

4 10,3 10,3 35,9

Advisor Engineer

Environment Coordinator Manager

Valid Frequency Percent Valid Percent Cumulative

Percent

Within every department employees fulfil different roles. For example the technology department is managed by a technology manager. He is part of the technology department, but can not be considered a technologist, since he should have the overall view.

What is the average lead time of a project you participate in?

6 15,4 15,4 15,4

6 15,4 15,4 30,8

7 17,9 17,9 48,7

9 23,1 23,1 71,8

11 28,2 28,2 100,0

39 100,0 100,0

< 3 months 3-6 months 6-9 months 9-12 months

> year Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.4 corresponds with statement 4

The fourth question asked is what the average lead time of a project is. The answers given diverge, which is understandable since every investment ranges from a small investment up to investment of more than 3.00.000 euro’s, see paragraph 4.7.

I see working in projects as an advantage.

10 25,6 25,6 25,6

25 64,1 64,1 89,7

4 10,3 10,3 100,0

39 100,0 100,0

Completely Agree Agree

Neutral Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.5 corresponds with statement 5

The conclusions made based on this table can easily be drawn. 89.7% of the employees completely agree or agree that hey see working in projects as an advantage. This means that employees also see the benefits of working in a team, which makes easier to imbed the right energy decisions.

I feel commited when execution a project.

17 43,6 43,6 43,6

21 53,8 53,8 97,4

1 2,6 2,6 100,0

39 100,0 100,0

Completely Agree Agree

Neutral Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.6 corresponds with statement 6

Conclusions based on this sixth statement can, just like the previous one, easily be drawn.

What is striking is that more than 97% feels committed when executing a project. Common

commitment is the essence of a team. Without is, groups perform as individuals; with it, they

become a powerful unit of collective performance (Kreitner et. al., 2002). The high

commitment level of the employees is thus beneficiary when teams should act upon the

energy issue. Performance is needed regarding the energy topic.

I think that there is too litte communication within a project team.

1 2,6 2,6 2,6

5 12,8 12,8 15,4

15 38,5 38,5 53,8

17 43,6 43,6 97,4

1 2,6 2,6 100,0

39 100,0 100,0

Completely Agree Agree

Neutral Disagree

Completely Disagree Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.7 corresponds with statement 7

The seventh statement shows that there is less agreement between the employees than there was on the previous two. Most of respondent stand neutral or disagree with the statement that there is too little communication within a project team. There is little conformance on this statement; only 2 completely agree of complete disagree with the statement.

I have to little time too complete a project.

3 7,7 7,7 7,7

12 30,8 30,8 38,5

19 48,7 48,7 87,2

5 12,8 12,8 100,0

39 100,0 100,0

Completely Agree Agree

Neutral Disagree Total

Valid Frequency Percent Valid Percent

Cumulative Percent

Table XII.8 corresponds with statement 8

This table shows that only five people disagree on this statement. The majority is neutral about this project and 38.5 % agrees with the statement. The overall conclusion is that the answers of this statement tend to shift to agreeing with this statement.

I rely on the information supplied to me by my project members.

3 7,7 7,7 7,7

25 64,1 64,1 71,8

8 20,5 20,5 92,3

3 7,7 7,7 100,0

39 100,0 100,0

Completely Agree Agree

Neutral Disagree Total

Valid Frequency Percent Valid Percent

Cumulative Percent

Table XII.9 corresponds with statement 9

Almost 72% agreed on this ninth statement and only 7.7% disagreed. The overall conclusion that can be made is that employees rely on the information supplied by their project members.

I think that there are too many milestones in the execution of a project.

1 2,6 2,6 2,6

13 33,3 33,3 35,9

Agree Neutral

Valid Frequency Percent Valid Percent Cumulative

Percent

I think that management has too much decisive power.

1 2,6 2,6 2,6

2 5,1 5,1 7,7

10 25,6 25,6 33,3

25 64,1 64,1 97,4

1 2,6 2,6 100,0

39 100,0 100,0

Completely Agree Agree

Neutral Disagree

Completely Disagree Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.11 corresponds with statement 11

Almost 67% of the respondents completely disagreed or disagreed on this statement. Only three of them agreed on management having to much decisive power. The overall conclusion is that management does not have too much, which is beneficiary for a cross-functional team.

What are according to you the energy price as a percentage of the cost price.

2 5,1 5,1 5,1

13 33,3 33,3 38,5

11 28,2 28,2 66,7

9 23,1 23,1 89,7

4 10,3 10,3 100,0

39 100,0 100,0

0 - 5%

5 - 10%

10 - 15%

15 - 20%

20 - 25%

Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.12 corresponds with statement 12

There is a lot of dispersion between the answers given to the statement what the energy prices are as a percentage of the cost price. The correct answer was between the 15% and 20%.

Currently the percentage of energy cost in the cost price over the year 2006 was 15% and for some product even 19%. It is estimated by the control department that the number of 15% will increase to 18% in 2010. Only 23% of the respondents answered correctly, but what is even more striking is that almost 67% thought that this percentage is lower. Most of the employees therefore do not know that FDQ uses a lot of energy that is affecting the cost price.

I think that energy consumption is being given little attention in projects.

4 10,3 10,3 10,3

22 56,4 56,4 66,7

7 17,9 17,9 84,6

6 15,4 15,4 100,0

39 100,0 100,0

Completely Agree Agree

Neutral Disagree Total

Valid Frequency Percent Valid Percent

Cumulative Percent

Table XII.13 corresponds with statement 13

Of the 39 respondents, 22 agreed on the statement that energy consumption is being given little attention in projects. In total 67% agreed on this statement and only 15.4% disagreed.

The conclusion that can be drawn from this statement is that the energy consumption is indeed

being given too little attention.

I see many energy reduction possibilities.

1 2,6 2,6 2,6

17 43,6 43,6 46,2

19 48,7 48,7 94,9

2 5,1 5,1 100,0

39 100,0 100,0

Completely Agree Agree

Neutral Disagree Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.14 corresponds with statement 14

Most of the respondents answered this statement with neutral. But when the other answering options are being regarded there can be seen that most of the people (18) agreed on seeing many energy reducing possibilities. And only 2 disagreed on this statement.

I think that my department gives too little attention to energy reductions.

1 2,6 2,6 2,6

10 25,6 25,6 28,2

18 46,2 46,2 74,4

10 25,6 25,6 100,0

39 100,0 100,0

Completely Agree Agree

Neutral Disagree Total

Valid Frequency Percent Valid Percent Cumulative

Percent

Table XII.15 corresponds with statement 15

The conclusion that can be drawn from table XII is that most of the most of the respondents answered neutral (18). Unlike the previous statement, 10 respondents disagreed with statement 15 that their department gives too little attention to energy reduction. But also 10 respondents agreed. So it seems that some employees within FDQ think that their department is giving enough attention and others think that their department does not.

Question 16 of the questionnaire could not be analyzed with the SPSS statistical program, because it is an open question. But the answers given on this question will be listed below.

The answers gave insight in the energy reducing opportunities the respondents see;

The Energy Reducing Opportunities seen by the Respondents

1. Search for alternatives when the project concerns a replacement.

2. Shut the lights of by means of an automatic switch.

3. FDQ does not give enough attention to possible energy subsidies.

4. Energy reduction by means of HVAC heat recovery.

5. Buffer the energy in groundwater.

6. Saving energy by using residual heat.

7. Regard energy cost in the total life cycle phase of a machine or process.

8. When refreshing the acid in the bath, a lot of fluid circulates unused.

9. The Plinke has a lot of non isolated flange couplings.

10. In project the emphasize lies on price in relation to quality, energy is not regarded.

11. Use frequency converters when lining up the pumps.

12. Check the steam traps (in Dutch condenspotten) on an annual base.

Appendix XIII Organisational Culture

This appendix has the function of developing a deeper understanding of the organisational culture in relation to Teijin Aramid Emmen. The culture is not going to be worked out in detail. Only the topics culture function and corporate culture are going to be dealt with because, as mentioned in paragraph 2.2, the soft side is not going to be dealt extensively.

XIII.1 Culture Function

The culture of an organisation fulfils four functions (Kreitner, Kinicki & Buelens, 2002).

These four functions will be discussed in this appendix and can be described as follows;

1. A culture has the function of giving members an organisational identity.

2. A culture the function of facilitating collective commitment 3. A culture has the function of promoting social system stability

4. A culture has the function of shaping behaviour by helping members make sense of their surroundings.

The organisational identity and collective commitment are being reinforced at FDQ by for example the bonuses every employee received for the good results over the year 2006. This can be seen as a reward for contributing to and realizing the high amount of Twaron produced.

The employees are rewarded as part of the collective that made that year to such a success.

The last couple of years Teijin Aramid Emmen has expanded rapidly. Because of that rapid growth a number of new employees were hired. This can be seen in appendix XII, table XI.1.

41% percent of the employees work less than three years for FDQ.

The third function of a culture, social system stability, reflects the extent to which the work environment is perceived positive and reinforcing, and conflict and change are managed effectively (Kreitner, Kinicki & Buelens, 2002). Within FDQ the employees are empowered to develop their abilities to the fullest. With the empowerment of employees Teijin Aramid wants to nurture a corporate community with a wide variety of abilities and personalities to foster creative innovation. This culture function is particularly appropriate for cross-functional project teams, which are in turn the most appropriate teams to foster energy awareness and realize energy reductions.

The last function of a culture is that of helping employees understand why the organisation does what it does and how it intends to accomplish its long term goals. The long term operational goals are communicated twice a year at the presentation of the Three-year Operational Plan (TOP). On a more detailed level are the goals of FDQ communicated by an internal annual report over how business was conducted last year. The corporate culture with these four functions in the back of the mind will be further elucidated in the next paragraph.

XIII.2 Corporate Culture

To decipher what is really going on in an organisation requires detective work and probably

some experience as an insider (Daft, 2001). A researcher comes in contact with the corporate

culture and can therefore state his observations in this thesis. At FDQ there is no formal dress

code, except in the plant itself, since there is being worked with aggressive chemicals. Almost

every office door is open and everybody is free to ask questions. Within FDQ self this is

referred to as the “open-door culture”. Although there is a strict hierarchy to conduct business

in, the employees do not act in accordance to this strict hierarchy.