"Waste management: a strategic supply chain issue"

Waste Management: a Strategic Supply Chain Issue Chris Hicks Oliver Heidrich University of Newcastle

Waste is a strategic issue
Because:
Companies are facing intense competition which leads to strategies that seek to reduce costs through minimising all types of waste
National and international regulation and legislation is increasing
Customers are increasing concerned with the environmental impact of products and services

Manufacturing view of waste
“ Any activity which consumes resources or creates costs without producing any offsetting value stream”
Ohno’s 7 wastes
Overproduction
Waiting
Transportation
Inappropriate processing
Unnecessary inventory
Unnecessary motions
Cost of defects
Bicheno added untapped human, waste of inappropriate systems, wasted energy & water, wasted materials, wasted customer time,defecting customers

Legislation
Protection
Preservation
Regulation
Planning
Authorisation to operate
Control of operations
Product performance and disposal
Decommissioning impacts
Industrial processes and society
Consortia and voluntary agreements
Transparency
Public perception
Public involvement
Corporate societal responsibility

Legal definitions
“ Any substance or object which the holder discards or intends, or is required to discard” (Framework Directive on Waste)
“ Wastes are substances or objects which are disposed of, or are required to be disposed of by national law” (Basel Convention)
The first definition is absolute whereas the second is relative to national law.
“ Discard” is viewed as having broader meaning than “dispose”

EU Court of Justice Definition
“ Something can simultaneously be ‘waste’, a product, good, raw material or substance, irrespective of economic value, collection, processing etc. This definition is independent of qualitative or commercial value, possible market, geographical purposes or destination of waste”
This definition makes no distinction between waste and non-waste

Waste
EU has “waste streams” that are receiving priority attention – packaging, end-of-life vehicles, batteries, electrical and electronic and hazardous household waste.
May be considered in terms of processes – caused by variability, it may be turned into non-waste by additional processes
Waste is relative – to primary function, process or owner
Categorised according to source – household, industrial and commercial
Classified by properties, hazardous / non-hazardous, radioactive etc.

EU Principles
Prevention principle
Producer responsibility and polluter pays principle
Precautionary principle
Proximity principle

Environmental and operations management
Companies may see environmental management as an external constraint. A narrow legal function concerning compliance with legislation
Operations managers can plan, influence and leverage environmental issues for competitive advantage.
Environmental technologies can reduce operating costs, create competitive advantage and long-term risk whilst pre-empting regulations

Approaches
Clean design – majority of life cycle costs committed at the design stage. Design largely determined waste during construction, operation and decommissioning.
Bicheno 4 Rs Redesign, reduce, recover, recycling and remanufacturing
Life cycle costing
Life cycle assessment.

Table 1 An indication of the methods that apply at each level of the waste hierarchy Waste Management Hierarchy Methods Prevent Clean Design Design for: manufacture, assembly, maintenance, dismantling, standardisation Extend product life expectancy Manufacturing technology e.g. near net-shape forming. Lean Manufacturing, Just-in-Time Manufacturing Total Quality Management Process monitoring and control Environmental management systems (EMS) Reuse (no physical or chemical changes necessary) Primary / secondary function After use Repair Recycle (changing the physical or chemical properties) Remanufacture Reclamation of materials Regeneration Composting Material recovery Energy recovery Incineration to produce energy Safe disposal Incineration without energy recovery Landfill

A functional model of waste Management in supply chains Raw materials Process A Process B Process C Process D Process E Product Waste Reuse Recycling Energy Recovery Landfill Waste Reuse Recycling Energy Recovery Landfill Reprocess Reprocess Process steps

Case study Initial conditions preparation batches moulding final packaging Product 68317t Raw materials 100000 t Wastes (5%) Wastes (11%) Wastes (3%) Wastes (2%) Wastes (15%) 95000t 80750t 71867t 69711t Reuse (0%) Recycling (0%) Energy (0%) Landfill 100% Reuse (20%) Recycling (25%) Energy (0%) Landfill (55%) Reuse (0%) Recycling (10%) Energy (0%) Landfill (90%) Reuse (10%) Recycling (15%) Energy (0%) Landfill (75%) Reuse (0%) Recycling (15%) Energy (0) Landfill (85%) 100% value of final product

Functional model after application of new strategy preparation batches moulding final packaging Product 68317t Raw materials 100000 t Wastes (5%) Wastes (11%) Wastes (3%) Wastes (2%) Wastes (15%) 95000t 80750t 71867t 69711t Reuse (0%) Recycling (90%) Energy (0%) Landfill 10% Reuse (40%) Recycling (45%) Energy (0%) Landfill (15%) Reuse (10%) Recycling (70%) Energy (0%) Landfill (20%) Reuse (60%) Recycling (30%) Energy (0%) Landfill (10%) Reuse (30%) Recycling (45%) Energy (0) Landfill (25%) 100% value of final product

Conclusions
Many interpretations of the word “waste”.
Manufacturing focuses upon value, whereas legislation and regulation focuses upon physical waste.
Poor integration of organisational functions can be a barrier to effective environmental management.
Majority of cost and environmental commitments are made at the design stage.
A functional modelling method has been proposed for waste management.
A case study has demonstrated how waste can be minimised through the strategic development of supply chains.

"Waste management: a strategic supply chain issue"

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"Waste management: a strategic supply chain issue" Document Transcript