minimise waste maximise profits

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Janette Ackroyd from Envirowise discusses how to minimise your businesses waste and save money


  • 1. Minimise Waste Maximise Profits 17th March 2009 Janette Ackroyd Envirowise Advisor
  • 2. Drivers for Resource Efficiency Principles of Resource Efficiency Business Case Studies Session Identifying opportunities Summary Eco Design Making it happen Support and advice
  • 3. Cost Drivers 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 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
  • 4. Risk Management Insurance Public image Stakeholders Regulators Prosecution
  • 5. Legislative Drivers 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
  • 6. Principles of Resource Efficiency Understanding the Jargon
  • 7. South East Ecological Footprint For all to live as we do we would need 3 Planets!
  • 8. Do you know how much wasting Do you waste resources is resources? costing your business?
  • 9. Disposal costs: Effluent, Skips, Landfill charges, Air pollution charges VISIBLE COSTS Energy use Maintenance Utility use HIDDEN Time Raw materials COSTS Effort Labour Production capacity Handling & storage Rework Transportation Lost profit The true cost of waste = 4% of turnover
  • 10. Resource Efficiency = Doing More with Less
  • 11. 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
  • 12. Cost Saving Impact Turnover 1,000,000 Profits 100,000 Waste Cost 50,000 Waste 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
  • 13. What Should You Do With Your Business Waste? Your Options
  • 14. What did they achieve? Steel drum re-design & re-use saves 16,000 a year Quality benefits through better Eliminate product protection it? Health and Safety benefits through safer handling Reduced waste needing recycling
  • 15. What did they achieve? 1,800 reduction in purchasing costs Reduce 97% reduction of plastic bottles going to landfill it? Prevention of 164 Kilos of bar soap being sent to landfill
  • 16. What did they achieve? 90,000+ reduction in pallet purchasing costs over two years Reuse it? 2,500 income from selling euro pallets Reuse of 450 tonnes of wood
  • 17. What did they achieve? Requirements of customers met Segregation of waste enabling Recycle diversion from landfill into recycling It? Procurement of materials with a recycled content
  • 18. What did they achieve? Better ventilation and removal of dust from the shop floor Heat recovery from waste wood for space heating Recover Reduced heating costs It? 75% reduction in wood waste to landfill Reduced waste disposal costs
  • 19. Landfill tax Actual cost to business per per tonne tonne 2005 18 91 2006 21 95 2007 24 100 2008 32 112 2009 40 124 2010 48 136
  • 20. Resources wasted Profit wasted Cost saving opportunities missed Avoidable wastes sent to landfill Impacts
  • 22. Your business waste Identify your key waste streams Think about how they can be moved up the waste hierarchy
  • 23. Now we know the principles. The next step is looking at how to identify opportunities
  • 24. If you dont measure it . you cant 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
  • 25. 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
  • 26. 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
  • 27. By identifying where waste is produced it is easier to see why it is produced Quantify the cost of waste highlighted on your map
  • 28. Service Sector Hotel Example Paper Check in Waste Paper Energy CO2 emissions Clean towels Used towels Room facilities Soap/shampoo Shampoo bottles Soapy water to drain Restaurant facilities Room facilities Check out Improvements: Electronic booking system PC switch off/power down Towel reuse policy Refillable bottles Biodegradable products
  • 29. 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
  • 30. 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


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