• Inventory Control
• Product Specification and Selection
• Process and Application Expertise
• Preventive Maintenance Support
• Continuous Improvement Projects
• Health and Safety Support and Training
• Environmental Compliance &
  Waste Management
• Data & Information Management
• Communication Program
• Laboratory Analysis

Quaker provides the following features in a phased implementation method that ensures an effective Management Services Program.

1.	A three-phased approach to implementation can be used to smooth the transition to Chemical Management.
2.	Quaker provides research and development support and new product technology to keep your plant on the cutting edge of new products and applications.
3.	ChemTRAQ® can be used to provide environmental management system support.
4.	Technical service and support, chemical materials in all wet process areas.
5.	Quality verification on all incoming materials included in the program.
6.	Statistical Process Controls (SPC) for applicable process areas.
7.	Consolidation of chemical products, drum reduction, and usage reduction through process control and recycling measures.
8.	State-of-the art Inventory Control System including bar coding and JIT delivery.
9.	Process evaluations and recommendations for continuous process improvement.
10.	Training plant personnel on proper and safe use of chemicals.
11.	Participation by Quaker staff in committee meetings to maintain communications.
12.	Quality assured by our ISO 9001 certification.

The purpose of this program is to provide an efficient, cost effective solution to chemical usage throughout your plant. The goal is to manage all chemicals used in your plant. It is not our intent to change any chemicals or products that perform to specifications and are achieving the best cost and performance possible. The following is a description of
typical comprehensive Management Services program.

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Section 2.  Inventory Control
By purchasing the right amount of needed chemicals and assuring timely delivery at the point
of use, the impact of chemical use on production is minimized. In Phase II of the Program, Quaker will provide a state-of-the-art inventory control system.

Product Receiving and Inventory Control
Quaker will manage the scheduling of material to ensure the availability of the chemicals to meet the plant's production needs. Data will be generated to determine the appropriate max/min order points that will optimize inventory control, as well as, product delivery costs. It is Quaker's intent to optimize freight costs in conjunction with speed of delivery and reliability. We will institute a policy of drum reduction, as well as, bulk delivery of some items. Where acceptable, a bulk-to-bin delivery system will be implemented. This will allow for substantial savings in product price and container handling. Additionally, a bulk-to-bin system frees up floor space and incorporates a disbursement site.

Disbursement sites will enable the Management Team to maintain accurate usage documentation for each burden or cost center.

The Quaker Program Manager will be responsible for inventory control, ordering, warehousing, and delivery of all products covered by the Management Services contract. Deliveries will be scheduled to meet the plant's requirements and made in a JIT manner to keep on-site inventories at a minimum. Delivery times will be arranged with the Shipping/Receiving Supervisor. Advanced approval will be obtained for deviations from the agreed upon schedule. Products not manufactured by Quaker will be purchased by Quaker's Management Team
on a second- and third-tier basis. The plant will realize a number of benefits from Quaker’s inventory system including the following:

• Labor and cost savings - reduced record keeping and interface with suppliers
• Product inventory is assured; out of stocks are avoided
• Quaker Chemical owns the inventory eliminating the cost of inventory for the plant
• Fewer purchase orders generated
• Fewer invoices generated
• Assurance of full compliance with Local, State, and Federal Guidelines
• Ability to immediately locate specific chemicals
• Reporting of chemical usage by specific burden or cost center
• JIT inventory control

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Section 3.  Chemical Product Specification and Selection
Performance and price. Two elements that inevitably go hand in hand. Our major objective is to relate the two in ways that assure clearly measurable benefits. We quantify the total cost of using chemicals.

Understanding and Accounting for All Chemical-Related Costs:
In most manufacturing plants, attention is focused on the unit cost of chemicals: emphasizing bulk purchases, package size, grades of material, and inventory levels. In our Management Services Program, we determine the total impact on your operation of using various chemicals. We identify the following hidden costs:

• Acquisition
• Ownership
• Delivery
• Receiving, Handling and Storage
• Application and Use
• Disposal and Recycling
• Compliance with Regulations

We also look at indirect impacts of the chemical used that impact your profitability including:

• Production Rate
• Tooling Life
• Quality
• Waste Part Production
• Employee Productivity and Health
• Upstream and Downstream Process Impacts

As with all fields today, technology is moving ahead at an increasing pace. We at Quaker are continually searching the world for new concepts and products from our organization and from sources outside of our company. Our success depends on our ability to do this and to determine the optimal use of the various technologies by our customers. Our objective is to identify chemical specialties that are clearly superior to current products, and incorporate them in a unique offer of teamwork, service, application know-how and support that provides you with the optimal cost/performance ratio.

We do this by maintaining long-term relationships with other chemical suppliers with whom we team, and by cooperating with competing companies who may have a superior product for a specific application. If the results we desire cannot be achieved using conventional products,
we are prepared to develop custom-formulated products. Our R&D process involves our specialists interacting closely with your process experts to gain insight into the fluid-process interaction which then enables us to formulate the products needed.

Section 4.  Chemical Product Use and Control
The proper use of chemicals in your plant requires ongoing monitoring and control. Quaker’s product knowledge base and analytical capabilities assure that our on-site staff provides you with world class, real-time problem resolution and process optimization.

On-site Laboratory
Quaker will manage and operate a full-time, on-site laboratory for the prompt evaluation of metalworking fluids. The requirements for this facility will be identified and described in the program Scope of Work. Quaker will provide any necessary equipment or laboratory glassware required for the program up to an agreed cost. Quaker’s Corporate Analytical Laboratory is dedicated to the support of all off-site Management Services laboratories.

Central Analytical Laboratory
The Quaker Analytical Lab, located in Conshohocken, Pennsylvania is a state-of-the-art
support laboratory servicing Quaker’s Management Services Partners in terms of the development, manufacture and application of high quality products. Although the bulk of the service is provided to our North American customers, the support required by our worldwide affiliates and subsidiaries gives the Analytical Laboratory a global view of technology and its progression. As part of Phase II of the program, the plant will have access to the support and expertise of this laboratory.

Quaker Product and Process
Immediate access to Quaker’s global technical knowledge is provided by our internal communication and data management systems. This system includes a global electronic communications system. Using this communication system, information is transmitted to and from any Quaker location in the world. A network of the people providing management services at customers’ plants receive periodic communications on best practices on a global basis.

All products produced by Quaker have a knowledge base of actual applications where the chemical is used, including performance characteristics and process problems that have been experienced. Finally, individual technical experts are dedicated full-time on a global basis to achieve technology transfer.

Systematic Process Evaluation
In optimizing the application of products we combine your knowledge of your plant and processes with our product knowledge and system-wide view. By looking at upstream and downstream processes, and even suppliers’ and customers’ processes, an overall systems view is achieved that enhances your production efficiency.

Section 5.  Preventive Maintenance Lubrication Program
"An ounce of prevention is worth a pound of cure" is no more true anywhere than in manufacturing plants. Monitoring maintenance lubricants allows Quaker to identify where problems exist, and help lubricant suppliers apply state of the art management systems.

At the core of Quaker’s Preventive Maintenance Lubrication Program are six tasks:

• Understanding
• Specifying
• Monitoring
• Detecting
• Correcting
• Avoiding

Understanding involves the training of Management Services and plant personnel in all aspects of lube oil and grease physical and chemical characteristics, including additive technology.

Specifying includes the development of lube charts for critical and common machinery for process optimization and product consolidation. We survey existing vendors for new and promising additive technology to focus on downtime avoidance and cost reduction.

Monitoring of lubricant product and process conditions provides the data needed to anticipate and avoid maintenance failures. Detailed documentation allows trend and follow-up analysis to pinpoint causes of failures and modify procedures to avoid future occurrences.

Detecting is the process of learning to correlate knowledge of process, lubricants, environment and application to separate cause from symptom. Quaker will work together with the plant to enhance current maintenance lubricant detection techniques.

Correcting maintenance lubrication problems is the primary focus for cost reduction and downtime avoidance.

Avoidance of downtime and repair costs is the primary goal of a Preventive Maintenance Program. Improvement in these items is the metric we use to measure success of this program.

A firm grasp of these tasks is essential to a World Class PM Program. The major
elements of this program to achieve the above goals include:

• Routine Oil Analysis
• Temperature Monitoring
• Vibration Monitoring
• System Inspection
• Ferrography
• Lubricant Charting
• Bar Code Leak Quantification

Section 6.  Continuous Improvement
Quaker is committed to consistently supplying our customers with products and services of outstanding quality and performance. To do this we must continually prove our value, and maintain a high level of customer confidence.

Continuous improvement in our Management Services' programs is the centerpiece of Quaker’s value to the customer. Our continuous improvement program deals with those factors that reduce manufacturing costs and increase productivity. Although it takes more time to achieve the process and production improvements in this area, the impact on the cost and profitability
of the plant is many times greater than those achieved through purchasing and price reduction. Our Management Services Partnership develops the atmosphere where all parties work together in a mutually beneficial way to improve plant performance. Focus on results is the
key to enhancing performance and reducing overall costs. This requires active participation
from Tier II suppliers, outside specialists, consultants, and plant employees. Quaker provides the systems and focus to do this.

During Phase II of the Partnership, the Quaker Team will maintain a daily tour of all operations pertaining to the program and will physically inspect the mechanical operations, as well as, the chemical condition of washers, coolant systems, and all applicable lubrication equipment.
This Program Includes:

• Interaction with operators and plant personnel.
• Documentation and resolution of questions and concerns
  relating to employee health and safety.
• Troubleshooting chemical-related problems.
• Identifying areas in need of improvement.
• Documenting areas that appear "out-of-spec."
• Clean-out procedures (and frequencies) will be reviewed
  to ensure production of quality parts.

The Quaker Management Services (QMS^sm) Team will thus be able to address abnormal conditions, problems, concerns, and generate predictive and preventive maintenance techniques that will enhance the baseline data for continuous performance improvement.

Documentation and Reporting
Continuous improvement depends on constant monitoring and reporting of process conditions and establishing baseline operating conditions. Quaker employs Program Management Software and databases that we have specifically developed for reporting and documentation
in Management Service accounts. This software actually models the manufacturing facility
on a machine by machine basis to allow analysis of individual machines or entire operations. Documentation assures accountability and identification of remedial actions necessary to maintain proper performance.

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Section 7.  Safety, Health, & Environmental Compliance
Care for the environment is an ever more demanding issue. Quaker believes that every effort must be made to avoid harm to the environment and to contribute to solutions that help
sustain the quality of our surroundings.

ChemTRAQ®
ChemTRAQ^® is an environmental management software package that uses data
about hazardous materials used in your plant to help meet EPA and OHSA requirements. ChemTRAQ^® focuses on Hazardous Communication standards and EPCRA reporting requirements. The software allows you to print important documents like material safety data sheets, safe use instructions, and chemical inventory lists. ChemTRAQ® can also assist in filling out reports like Form R and Tier I & II required yearly by the EPA and OSHA, either manually or using data directly from Image inventory control software. ChemTRAQ^® was developed to help minimize the time required to meet EPA and OSHA Hazcom standards. ChemTRAQ^® will provide the plant with convenient MSDS management and
environmental reporting.

The software manages the information from process surveys including Quaker metalworking, cleaning, corrosion prevention, and stamping/forming surveys. The equipment and process
data is stored to facilitate chemical control, data management, conversion information, hazardous communication, training, OSHA auditing, The data supports the storing and
printing of Safe Use Instructions and warning signs for posting at machine locations.

Reports Generated

• AHH (Additional Health Hazard) Report
• Chemical Characteristic Report
• CAS # Report
• Warning Sign Inspection Report
• Audit Report
• Chemical Posting Report
• Product Line Report
• Department Report
• Equipment Report
• Equipment Location Report
• MSDS Date Report
• MSDS Date Audit Report

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Section 8.  Recycling/Reclamation
Recycling of process chemicals reduces your costs as well as improves the environment. Through our program we integrate product selection, process application and recycling needs
to achieve the optimum performance and lowest cost of the chemicals you use.

Recycling is an integral part of the majority of our Management Service Programs. The goal of overall cost reduction will be greatly impacted by on-site recycling. This concept will be aggressively pursued by Quaker in Phase II. We propose the implementation of a program that will significantly reduce chemical disposal with the eventual goal of zero discharge of spent or contaminated metalworking fluids.

Currently, we are working with several companies in multiple locations to recycle products rather than dispose of them. Based on the plants that are being serviced, we have been able
to enhance their production and show substantial cost savings.

The following lists the areas in which we have achieved substantial savings:

• Hazardous Waste Disposal
• Waste Treatment
• Chemical Usage
• System Longevity
• Tool Life
• Surface Finishes
• Operator Acceptance
• Chemical Additives
• Housekeeping

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Section 9.  Communications, Training & Program Structure
Communication is the lifeblood of any World Class Management Services program. Quaker ensures the accurate and timely transfer of information through:

• Attendance by Quaker site team members at all scheduled program
  review meetings, emergency meetings, and audits.
• Interaction between Quaker's on-site Management Services Team and the plant’s personnel on a daily basis.
• A dedicated effort for clear understanding of each person's role and responsibilities
  to the customer’s Management Services Team.
• Active participation by Quaker team members on committees and involvement with
  the plant's environmental, health and safety, maintenance, operators, foremen, and department personnel.
• A willingness to attend departmental meetings and address employee concerns.
• Publishing the names and materials of any subcontractors providing material to the
  plant under the terms of the Management Services Agreement.
• Quaker long-term relationships with second tier suppliers, consultants, specialists, trade organizations, and machine tool manufacturers.
• Twenty-four hour availability of Quaker site personnel through pagers and an emergency phone list on file with the plant.

Scope of Work
To assure that expectations are clear, and the services to be provided under this program are defined, a scope of work will be prepared and included as part of the final contract. This scope typically includes changes to the original concept based on detailed information obtained during Phase I of the program.

Training
For a partnership like this to work, everyone must realize the importance of the chemicals they are using and how to use them. Quaker will custom design a training program to work in conjunction with the plant and their accredited programs. The following will illustrate each training program and the topics that will be discussed.

A. Chemical Management
B. Regulatory Awareness
C. System Maintenance

Advanced training will be given to personnel in machine and system maintenance. These areas of training will include: Machine clean out procedures, quality control processes and chemical disposal.

If you would like to learn more about Quaker's Management Services (QMS^sm), please contact us at: info@quakerchem.com