JC Tianjin

Hello, everybody.
4 members from JCJP are attending this meeting, Otogawa san, hidakasan san, oto san and me
These are Japanese members concerned with this Issue.

Thank you very much for the continuous support, we completed the re-work and all 16 units were
shipped to EBARA. We really appreciate your strong support.

First of all,

I would like to introduce myself briefly.

My name is Kazuhiro Adachi, I joined John crane in 1993. I am a quality manager now. It has been
only 6 months since I became a QA manager.
About three years ago, I moved from the engineering department to the quality department, I have
worked as a gas seal engineer for 20 years.
And now, I am working for the quality department, making the best use of my engineer experience.
Next, otogawa san, hidakasan san oto san
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So, lets start the meeting,

Can you see our report??

We made this report. And I received some comments from you in last week.
I think that everybody understood The contents of this Issue.

So, todaysmeeting, we want to discuss these 2 contents.

- INTERNAL -

First is the contents No.3 conclusion

Second is the Contents No. 2.5. Non-conformity by cost
Do you have any question or comments?
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OK,

First is the contents No.3 conclusion,

1. Non-conformities summary

The cooler design did not match the high pressure specification
The selected pump did not match the process fluid specification
Water leakage from piping joint
Check ValveTucking of O-Ring
Relief ValveHung-up
Rust, Discoloration of welding, welding spatter
Ball ValveDeformation of of PTFE sheet
Name Plate : Miss marked (Unit error Bar MPa)
Our opinion is that;
That a Major problem is a design error; the Pump and cooler were not chosen in accordance to
the customer specification.
Next page,

The selected pump did not match the specification.

This is a JCJP issue.
Our preventive Actions were:
JCJP reviewed the confirmation process. At the moment, the project management is conducted by our
sales team for all of the customer notices. In the future, this process will be conducted and confirmed by
our engineers.
In this regard, do you have any questions?
Next page,

Water leakage from piping joint in addition to the cooler design that did
not match the specification.
We have several requests for this issue.

Regarding cooler investigation,

Could you explain the investigation progress and your opinion?

When will your analysis be completed?

- INTERNAL -

Could you provide strength calculation for the radiator cooler of Alumina.
XXXXXXXXXXXXXXXXXX
So, you and we have deferent thoughts.

However we believe that this non-conformity is a design error,

Because,
When we tested cooler at high pressure in our local vendor, the cooler was damaged again in
the second test.
In addition, the problem was solved when you changed the design.
Do you agree?
(So, I think that we cannot conclude this issue in this meeting. We will wait for your answer for
one more month.)
OK??
So, next is the Contents No. 2.5. Non-conformity by cost
We confirmed all cost by this problem about our expense.
Re-work cost 51511.9GPB , Transportation 14528.9, and JCJP inspection and visiting cost, Total is
79053.7GBP. This is high cost.
In my opinion,
In the internal rule in John Crane, as far as I know, external cost that is paid to local venders can
be claimed to the inter company, which is JC Tianjin this time.
Therefore, we received a request from the local vendor and we paid the rework cost and
transportation cost.
However, all of these issues include our mistake on pump selection.
And then, we have a proposal for Re-work and transportation cost shared by us. 20% of the
reworkcost and 50% transportation cost paid by JCJP.
This is our opinion.
(Do you have any other opinions?)
--------------------------------For the detail re-work costs,
Could you see the detailed quotation of ABC and ATU + 53B
ABC is 2838K JPY
ATU + 53B is 6276K JPY in total
The replacement cost of the pump is about 2060K in this.
I would suggest that if it is possible, you take help is in paying for the problem, by bearing 80%
of cost of the ATU.
Would you agree?
(So, I think that we cannot conclude this issue in this meeting. We will wait for your answer for

- INTERNAL -

one more month.)

We want to conclude our discussion on the expense early.

- INTERNAL -