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