Eastman Chemical

Company

Statistics Career Exploration Event

Penn State University

October 11, 2014

Personal background

Education

• BS Statistics, University of Tennessee

• MS Statistics, University of Tennessee

Eastman Chemical Company

• 22+ years

• Mostly in Applied Statistics Group

• Applied Statistics Group Leader for past four years

Professional Leadership

• ASQ Chemical and Process Industries Division

• ASQ/ASA Fall Technical Conference

2

The Story of Eastman

Who we are

4

A global specialty chemical company headquartered in Kingsport,

Tennessee

Approximately 14,000 employees and over 40 manufacturing sites around

the globe

Serving customers in approximately 100 countries

A company dedicated to environmental stewardship, social responsibility

and economic growth

2014 ENERGY STAR® Partner of the Year Sustained Excellence

2014 Ethisphere’s World’s Most Ethical ® Companies

2014 Glassdoor Employees’ Choice Best Places to Work (# 4)

2013 revenue of $9.4 billion

Diversified product lines & technologies

5

16% Building & Construction

17%

Transportation

16% Consumables

15% Tobacco

14% Industrial

Chemicals &

Processing

6% Health & Wellness7% Durables Goods

3% Energy, Fuels & Water

2% Electronics

2% Agriculture

2% Other

2013 sales revenue by market

Transportation: Innovative products in attractive

market segments

LLumar® V-KOOL®

High-performance auto tint

►

Eastman PlasticizersFlexible underbody coatings

►

► OEM

After Market►

Eastman Adhesion Promoters TPO bumper primers/coatings

►

Saflex®

Interlayer glass laminate ►►

Santoflex®

Antidegradants for tires►►

Solus®

Performance additives►►

Crystex®

Vulcanizing agent for tires►►

Eastman SolventsAutomotive OEM coatings

►

6

Eastman® Cellulose EstersPerformance additives

►

►

Note: “OEM” is original equipment manufacturer

Eastman PerformanceResins Additives for tires

►►

Cerfis®

Technology

Saflex®

Advanced interlayers

Optifilm®

Additives for low

VOC paint

Vista® LLumar®

IQue® EnerLogic®

Performance films

Eastman 168®

Plasticizers

Texanol®

Ester alcohol

Eastoflex®

Commercial roofing

Eastoflex®

Insulated glass sealants

Piccotac® Eastotac®

Carpet construction

Building & construction: Leading products in

attractive market segments

Gila®

Performance films

7

• Copolyester

• PVB sheet

• Branded

window film

• Cellulosic

polymers

• Non-phthalate

plasticizers

• Hydrocarbon

resins

• Acetate tow

• Acetate yarn

• Cellulosic

polymers

• Insoluble sulfurs

• Aldehyde

derivatives /

ketones

Eastman is a market leader

8

of our sales revenue is from product lines in

leading market positions2/3Additives &

Functional ProductsFibers

Adhesives &

Plasticizers

Advanced

Materials

Specialty Fluids

& Intermediates

#1 #1 or#2#1 or

#2 #1

• Oxo alcohols in

Americas

• Heat transfer

and aviation

hydraulic fluids

#1 or#2

Data Science at Eastman

9

Data Science

Applied Statistics

Operations Research

Business Analytics

Business Intelligence

Applied statistics group

Kevin Jones

NC State

Allen Cheek

Virginia Tech

Arved Harding

Virginia Tech

Howard Rauch

Virginia Tech

Mike Morrow

Purdue

Kevin White

Tennessee

Ashley Nelson

Virginia Tech

10

Josh Washburn

Virginia Tech

Applied statistics group

A long history…first formed in the late 1960’s

8 MS statisticians…and hiring

11

Our vision

Eastman has a culture where statistical methods are

integrated in decision making processes and statisticians

are influential leaders in the organizations they support

Our basic strategy

12

Area assignments• Emphasis on technology and manufacturing

• Area management process support of top projects

Training courses• Statistical Process Control

• Applied Statistical Methods

• Design of Experiments

Collaboration• Business Analytics

• Six Sigma

• Other analytic groups

Tools we use

13

Design of experiments

• Factorial experiments

• Fractional factorials

• RSM

• Split-plot

• Optimal experiments

• Mixture experiments

Statistical process control

• Control charts

• Process capability studies

Measurement systems analysis

• Gauge R&R studies

Variance component studies

Mixed models

Regression modeling

Nonlinear modeling

Multivariate statistics

Time series

Categorical data analysis

Reliability statistics

Software

• JMP Pro

• Minitab

• Design-Expert

• SAS

• R

What I like about being Statistician at Eastman

Variety of projects and tools

Influencing key decisions

Consulting and teaching

Group collaboration

Professional development

• Statistical

• Eastman (chemistry and business)

• Consulting

• Leadership

Eastman culture

Current Opportunities at Eastman

(full-time and summer 2015 internship)

15

Applied Statistics

• Technical expertise

• Applied learner

• Communication skills

• Relationship builder

• Consulting skills

• Ability to manage multiple

projects

• Statistical software

• MS or PhD in Statistics or

Applied Statistics

Business Analytics• Analytic capabilities

• Programming

• Data manipulation

• Business acumen

• Consulting skills

• Relentless curiosity

• MS or PhD in a relevant field such as Business Analytics, Statistics, Mathematics, Computer Science, or Operations Research

Questions?

Backup slides

Additives & Functional ProductsWell positioned for sustainable growth

18

Sales revenue by end-market

15% Building & Construction

49% Transportation

4% Industrial Chemicals& Processing

8% Consumables

2% Health & Wellness

14% Durable Goods

1% Electronics

Broad product portfolio of specialty

polymers, solvents and additives

for rubber

Leading in attractive segments of

transportation and building &

construction markets

Examples of end-use products include

tires, automotive coatings, paint and inks

7% Other

1% Energy, Fuels & Water

6% Durable Goods

10% Health & Wellness

Adhesives & PlasticizersSustainability, innovation, and growing consumer base in key end-

markets and developed markets driving growth

8% Industrial Chemicals

27% Building & Construction

41% Consumables

6% Other

1% Transportation

Sales revenue by end-market

& Processing

19

One of the world’s largest suppliers of

resins and non-phthalate plasticizers

Adhesives

• Examples of end-use products

include baby diapers, tapes,

labels, and nonwoven

consumables

Plasticizers

• Blended with other materials to

modify their properties, such as

making rigid plastic flexible

• Examples of end-use products

include flooring, sealants, and

medical devices

Advanced MaterialsEnd-market diversity is a source of strength

20

Sales revenue by end-market

10% Health & Wellness

17% Building & Construction

20% Consumables

27% Transportation

5% Industrial Chemicals

7% Electronics

14% Durable Goods

& Processing

1% Other

Advanced Materials segment includes

three product lines:

• Specialty Plastics

Known for clarity, strength, durability,

and chemical resistance

Used in a variety of end-use products

such as consumables, medical

devices, electronics and packaging

• Interlayers

Improve products people depend on

every day, such as car windshields

and home windows

• Performance Films

Improve the efficiency, safety and

functionality of windows and glass

surfaces as well as electronic devices0% Energy, Fuels & Water

21

FibersA global business with 79% of sales revenue outside

North America

One of Eastman’s oldest and

most profitable businesses

World’s largest producer of

acetate yarn

One of the world’s two largest

suppliers of acetate tow

Key end-use products include

cigarette filters, clothing, and

home furnishings

Specialty Fluids & IntermediatesDiverse end-markets support robustness in demand

22

10% Energy, Fuels& Water

9% Consumables

8% Agriculture

17% Building & Construction

40% Industrial Chemicals

8% Health & Wellness

& Processing

5% Transportation

1% Durable Goods

2% Other

Sales revenue by end-market

• Market and manufacture over 150

products:

• Intermediates, which are

products that go into the

manufacturing of other products

• Performance and custom-

manufactured chemicals, such

as heat transfer and aviation

hydraulic fluids

• Largest marketer of acetic anhydride

in the U.S.

• Only U.S. producer of acetaldehyde