Spring 2011 - Department of Chemical Engineering - Texas A&M ...

and attentive to the work place, knowledgeable and vested in
the company, and properly rewarded it can lead to fewer issues,
better running plants and better ideas. We also find the majority
of improvement ideas for our company come from our employees
and not consultants or other experts. I have to admit there is a
somewhat selfish motive in it. As a CEO, I recognize that if my
people are better trained and they feel better about their work and
work environment, then the company stands to gain.
One key metric we look at is annual turnover of employees.
Our industry runs about 15 percent on average, and when I
joined TPC we were at about 20 percent. This past year we
averaged right at five percent, which we are very pleased with and
that’s what we would hope for, given normal retirements and
attrition.
So finding the right employees and keeping them happy
makes good business sense, right?
Absolutely. Not only from the points made in my previous
statement but also from an economic sense. Over the working
lifetime of an employee, our company makes a multimillion
dollar investment in that person. Assuming that person
will contribute, with proper goals and objectives, it is a very
important investment for both sides. Given the scrutiny a capital
investment attracts in the management of our company it only
makes sense to put that same level of energy into the business of
managing our employees and overall workforce.
Having been in this field for more than 30 years, how have
you seen the market and industry change?
One of the most challenging but also rewarding areas of
change has been the speed at which competition is changing
and the speed at which the consumer has been educated. Both
our suppliers and our customers see real-time global market
information 24/7. For example, in the past we would fly to Asia
to sit down and talk with our customers about what was going
on around the world in our products and markets. Now, in
almost all cases, they already know what you know due to the
diversity of information, transparency of the markets, and the
speed at which the information is assimilated and transferred.
For example, we know today the spot price of butadiene
in China that traded overnight and how supply decisions
are being made today based on that pricing. So do all our
customers, competitors and our suppliers around the globe.
Decisions are now being made daily that used to be monthly
or quarterly adjustments. In an asset-intensive business like
ours this calls for completely different business models from
even just a few years ago.
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When I came into the petrochemical field in 1980, right
out of Texas A&M, North America was really the leader in the
global chemical industry. Not just in technology but people,
assets, and market share. The U.S. is now about 25 percent of
the industry with companies, technology, people and assets
all competing daily for the same global consumer. Going
forward this means we really have to understand every single
player in our field, what their motivations are, their cost
position, regulatory climate, and incentives are in order to
effectively compete.
We have to look at how, as individuals and as a company,
we will respond to and gear up for a real-time information age
where everyone in our supply chains knows as much as we do
– up, down or sideways. The good news is that it can be very
invigorating and create opportunities. For example, recently
one of our suppliers had a big issue. We knew about it within
30 minutes, and in less than an hour we had communicated it
to all of our customers. We got real kudos for being able to give
our customers all of that information as quickly as we did. They
were able to make appropriate plans, and fortunately this was a
non-event for them. This requires our employees to think 24/7,
365 days a year on how to manage our business. It drives many
companies to work in closer partnerships than in the past.
Why are you such an avid supporter of chemical engineering
education and Texas A&M University?
My education at Texas A&M has proven to be a cornerstone
for me both personally and professionally. Chemical
engineering has grown to be such a broad field – from the
advancing biomedical field to process industry applications.
One of the major pluses is that it is such a diverse engineering
discipline. While I am biased, the field really prepares you for
a broad, practical understanding of chemistry, math, physics,
and mechanical engineering – all to understand how the
real world works. I don’t know of any other discipline in the
college that is able to offer a student this breadth in the same
amount of study. When I look at the overall success that many
of our chemical engineering graduates achieve, I am convinced
we are on the right track with how we are challenging our
current students.
Having had the opportunity throughout my career to stay
close to the school in many capacities, I am continually amazed
at how hard the faculty and administration work to continue
to advance the university and the education that we offer at all
levels. Given the challenges of the world ahead, I am confident
we will continue to have graduates from all walks of our
university who are the problem solvers.
THANK YOU.
The Artie McFerrin Department of Chemical Engineering thanks all of its supporters, including those
friends of the department who contributed gifts in 2010.
The Air Products Foundation
Mr. Graham W. Bacon
Mr. and Mrs. John P. Bailey
Bechtel Group Foundation
Ms. Cassie Hamlin
BP Corporation North America Inc.
Chevron
Communities Foundation of Texas Inc.
Compliance Strategies and Solutions Inc.
ConocoPhillips
Mr. and Mrs. Paul F. Deisler Jr.
Mr. and Mrs. Rudy T. Dismuke
The Dow Chemical Foundation
Mr. and Mrs. Leonel D. Durbin
Enterprise Products Partners LP
Exxon Mobil Corporation
Mr. and Mrs. Nicholas E. Gallopoulos
The Gas Processors Association of Houston
Mr. Juergen and Mrs. Mariah Hahn
Ms. Kathryn Hanneman
Mr. Frederick J. Hartensteiner
Mr. and Mrs. Jack R. Hopper
Ms. Suzanne Huebinger
The Lubrizol Foundation
Marathon Oil Company
Mr. and Mrs. James F. Mathis
Mr. Ray A. Mentzer
Mr. Brock D. Nelson
Mr. and Mrs. Ray B. Nesbitt
Mr. and Mrs. Michael R. Niklasch
Mr. and Mrs. Thomas Michael O’Connor
Ms. Sheila R. Payne
Chemical Engineering at Texas A&M University – Limitless Possibilities.
Possibility. The very word, when spoken in the language of ingenuity and responsibility, is enough to inspire hope for a better
tomorrow. Here at the Artie McFerrin Department of Chemical Engineering, we recognize that our faculty and students have the talent
and potential to transform possibilities into realities and in doing so help make the world safer, cleaner, healthier and more efficient.
With this in mind, we’re committed to offering an educational environment ripe with possibilities and opportunities for our students.
In the lab we’re pioneering new advances in important areas such as energy, health and the environment. In the classroom we’re
consistently providing a world-class engineering education to our students that we believe will serve as a foundation for success
throughout their lives.
It’s an environment where an outstanding faculty engages in vital research while also inculcating the future leaders of our society
with both the knowledge and values that define a Texas A&M University education. But cultivating such an environment demands
resources. In short, we need your help.
Indeed, many of our research and educational endeavors would not be possible without help from our former students and friends
of the department. This support, when expressed in the form of undergraduate scholarships and graduate fellowships, enables young
Aggie engineers to pursue their educational goals and ultimately become leaders in industry, academia and government. When
channeled in the direction of faculty development and research, these contributions help us recruit and retain the best possible
teachers and scholars, ensuring that many generations of students receive an outstanding education.
However you choose to direct your gift, you can remain confident that your generosity will help us maintain
excellence in chemical engineering at Texas A&M. This year, make a donation for chemical engineering
through the Texas A&M Foundation. The Artie McFerrin Department of Chemical Engineering is
committed to serving our state, nation and world, and with your support, the possibilities are truly limitless.
Contact Andrew Acker, Chemical Engineering Development, Texas A&M Foundation
979.458.4493, 979.324.2953 or a-acker@tamu.edu or visit www.giving.tamu.edu.
Mr. and Mrs. Michael V. Pishko
SABIC Americas Inc.
Mr. Michael E. Sawyer
Mr. Charles W. Shaver III
Shell Oil Company Foundation
Mr. Brandon T. Stone
Mr. David C. Swienton
Mr. and Mrs. Norman J. Tetlow
Total Petrochemicals
TPC Group
Mrs. Donna Tromblee
URS Energy and Construction Inc.
Mr. and Mrs. Michael L. Walzel
Wells Fargo Foundation
Mr. and Mrs. Daniel H. Zivney
Mr. Robert E. Zumwalt