Minimise Waste Maximise Profits
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Minimise Waste
Maximise Profits17th March 2009
Janette Ackroyd
Envirowise Advisor
Session
Summary
• Drivers for Resource Efficiency
• Principles of Resource Efficiency
• Business Case Studies
• Identifying opportunities
• Eco Design
• Making it happen
• Support and advice
Costs of disposal to landfill
• Landfill Tax
• Increased in April 2008 from £24 to £32 per tonne
• Will increase by £8 per tonne until at least 2010/11
• In many European countries it is £100 per tonne
• Supply and demand
• Landfill capacity is running out – 2/3 years
Cost Drivers
Cost of many raw materials increasing
“Escalating prices for metals, plastics and other materials are
challenging manufacturers to find new methods to rein in costs.”
Industry Week 2006
Energy Costs increasing
• Insurance
• Public image
• Stakeholders
• Regulators
• Prosecution
Risk Management
Fundamental changes
• Landfill Directive
- bans certain materials from landfill & drives up disposal costs e.g. Tyres, Hazardous & biodegradable wastes
• Producer Responsibility
- Packaging, ELV, WEEE, tyres, batteries, chemicals
Legislative Drivers
Principles of
Resource Efficiency
Understanding the Jargon
South East Ecological Footprint
For all to live as we do we would need 3 ½ Planets!
Do you waste
resources?
Do you know how
much wasting
resources is
costing your
business?
HIDDEN
COSTS
VISIBLE COSTS
Disposal costs: Effluent, Skips, Landfill charges, Air pollution charges
Energy use
Utility use
Raw materials
Labour
Handling & storage
Transportation
The true cost of waste = 4% of turnover
Maintenance
Time
Effort
Production capacity
Rework
Lost profit
Resource Efficiency = Doing More with Less
Benefits of becoming
more resource efficient
Waste minimisation saves money
Bottom line benefits
Short payback periods
Typical savings are £1,000/employee
Low cost/no cost measures yield big results
Business survival
Cost Saving Impact
Turnover £1,000,000
Profits £ 100,000Waste Cost £ 50,000Waste Saving £ 10,000
£ K
Profits 100
Potential waste saving (1% of turnover) 10
Revised Profits 110
% age increase in profits 10%
Turnover increase required to produce same profits £100k
What Should You Do
With Your Business’
Waste?
Your Options…
Steel drum re-design & re-use
saves £16,000 a year
Quality benefits through better
product protection
Health and Safety benefits through
safer handling
Reduced waste needing recycling
What did they achieve?
Eliminate
it?
£1,800 reduction in purchasing
costs
97% reduction of plastic bottles
going to landfill
Prevention of 164 Kilos of bar
soap being sent to landfill
What did they achieve?
Reduce
it?
£90,000+ reduction in pallet
purchasing costs over two
years
£2,500 income from selling
euro pallets
Reuse of 450 tonnes of wood
What did they achieve?
Reuse
it?
Requirements of customers met
Segregation of waste enabling
diversion from landfill
into recycling
Procurement of materials with a
recycled content
What did they achieve?
Recycle
It?
Better ventilation and removal of
dust from the shop floor
Heat recovery from waste wood
for space heating
Reduced heating costs
75% reduction in wood waste to
landfill
Reduced waste disposal costs
What did they achieve?
Recover
It?
£136£482010
£124£402009
£112£322008
£100£242007
£95£212006
£91 £182005
Actual cost to
business per
tonne
Landfill tax
per tonne
Resources wasted
Profit wasted
Cost saving opportunities missed
Avoidable wastes sent to landfill
Impacts
THE WASTE & RESOURCES
HIERARCHY
Your business waste
• Identify your key waste streams
• Think about how they can be
moved up the waste hierarchy
Now we know the
principles….
The next step is looking
at how to identify
opportunities
If you don’t measure it ….
you can’t manage it!
1. Find out why and where you
• Use materials, water, energy
• Produce waste
2. Quantify so you can
• Focus on key cost savings
• Reduce risk
• Get the most gain for least pain
3. How do you compare?
• Benchmarks
• Performance indicators
4. Opportunities for savings
Initial Review
•Walk around your site to identify
�areas of waste and potential improvement
�a fresh pair of eyes
• Use a checklist and talk to staff
• Get data on costs and quantities for
�raw materials, utilities and wastes
�from invoices and meters.
• Estimate potential savings
• Identify gaps in your data and how to address them
Process Mapping
Can help you to identify:
• Where waste occurs
• How waste occurs
• How much it is really costing your business
It can also help you identify:
• Which processes are most wasteful
• Where to start
By identifying
where waste is
produced it is
easier to see why
it is produced
Quantify the cost
of waste
highlighted on
your map
PaperEnergy
Waste PaperCO2 emissions
Clean towelsSoap/shampoo
Used towelsShampoo bottlesSoapy water to drain
Improvements:
• Electronic booking system • PC switch off/power down
• Towel reuse policy • Refillable bottles
• Biodegradable products
Service Sector – Hotel Example
Check in
Room facilities
Restaurant facilities
Check out
Room facilities
What to Look For….
Particularly wasteful processes
Off cuts or discarded packaging
Water running down the drains
Unnecessary heating or lighting
Start by mapping the obvious
Look into less obvious wastes later
Who should you involve?
Where practicable, it is best to establish a team that includes:
• The environmental, quality, health and safety manager(s);
• The manufacturing and product development manager(s);
• Appropriate shop-floor staff (who often know the process best);
• The procuring and purchasing manager(s);
• Suppliers and customers
Identify Some Quick Wins
• Use the data you have gathered and the results of your analysis as a basis for your decision-making
– You may be able to identify leaks and faulty machinery
• Staff suggestion schemes linked to some sort of reward or incentive can help to generate improvement ideas
– Shop floor staff may know the processes better than you
• Brainstorming sessions, involving a small number of people, can be a useful way of generating ideas and getting the most from a team
– Don’t shoot the messenger – it’s better to know sooner rather than later if there is a problem
Measuring Resource Consumption:
Where to find the figures
Meters, analyses (of composition), process authorisations,
solvent inventories
Emissions to air
Meters, invoices, effluent discharge consentsEffluent
Waste production records, invoices, disposal/Duty of Care
documents, packaging waste forms, stocktaking
Solid waste/ process
residues
Production/sales figures, stocktakingProducts/by-products
Invoices, main meter, sub-metersWater
Invoices, main meter, sub-meters, portable meters Energy
Purchase records, stocktaking, dispensing recordsRaw Materials
Sources of information on costsItem
Start by measuring your key raw materials and utilities, then measure the
resources highlighted as significant during your waste mapping exercise.
Key Environmental
Performance Indicators
Most gain with least pain
Don’t Focus on ‘End of Pipe’ Solutions
Remember to apply the waste and resources
hierarchy
Think about your product and it’s packaging
Ask yourself if you are really providing what
your customers want
Impacts of product design
• 80% of the cost of product set at the design stage
• 93% of production materials not used in the final product
• 80% of products discarded after a single use
• Design decisions will affect the whole lifecycle from the manufacture and use to the disposal of a product
Average weekly shop in the UK
Average weekly shop in China
Design and the supply chain
Eco-design - what is it?
• Just intelligent design
- Reduces environmental impact – product / packaging
• Looks at amounts, types and mixtures of materials
• Design which looks at the whole life-cycle
- Identifies financial & environmental market opportunities
Eco-design – why do it?
• Legislation e.g. Packaging Essential Requirements
• Competitive advantage
• Positive brand image – customers expectations
• Makes sense – financial & environmental
• Pressure from the media
• Future proofing your business
‘Led to a definite reduction in raw material and production costs,
and improvements in production efficiency.’ Boots plc
‘Care in material selection can help to future-proof the company
against, for example, future legislative changes.’ Tetra Pak
Case Study Belkin
Packaging review at Belkin
identified £680k savings per
year by -
• Reduced raw materials
Also….
• Increased sales (shelf space)
• Increased shelf presence
(more brand on shelf)
Packaging indicator tool
Making it happen
Developing an action plan and getting
Management & staff buy-in
Consultation and Approval
• Seek comments from key personnel on the practicality of the
planned improvement measures and any potential barriers
• Ensure you communicate the potential benefits of the
improvement measures e.g. Cost savings, process efficiency, job
security
• Submit the final plan to senior managers for approval and to gain
their full support
The Next Step…Preparing An Action Plan
Develop an action plan that sets out:
• The major problem areas/causes identified by the waste mapping/review
• Clear overall aims and objectives
• Targets e.g. to reduce utility usage 10% over the next year
• Proposed priority improvement measures
• Potential cost/resource savings
Motivate The Team
Engage staff in the
development of plans
Give clear guidance
Encourage
ideas
Reward receptiveness to change
Recognise
support from
the team
Increase job satisfaction
Action Plan
£???? per year01/07/08S Waters30 tonnes
pa
50 tonnes
pa
Reduce packaging
on goods out
Objective Usage Target Who By
When
Potential Cost
Saving
Reduce electricity
use in offices
180000
kWh pa
162000
kWh pa
D Jones 01/08/08 £2620, per year
Reduce water use
in toilets
300 cubic
metres pa
250 cubic
metres pa
J Smith 01/07/08 £92 per year
Draft environmental
policy
n/a n/a D Jones 01/06/08 n/a
Group Exercise: Action Planning
Produce a basic action plan for the next year:
Think about where you need to start:
• Initial Review
• Commitment
• Waste mapping
• Data management & benchmarks
• Any immediate quick wins or ideas
Identify 3 key actions to take forward from today
Cleaner design
Cleaner technology
Hazardous waste
Key performance indicators
Environmental management systems
Managing change
Packaging
Resource efficiency
Solvents and VOCs
Waste management
Waste Minimisation
Water
Advice Line
0800 585794
Publications
Summary and Questions
We’ve looked at:
• Drivers for Resource Efficiency
• Principles of Resource Efficiency
• Business Case Studies
• Identifying opportunities
• Eco Design
• Making it happen
• Support and advice
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