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Minimise Waste Maximise Profits

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

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Minimise Waste Maximise Profits

  1. 1. Minimise Waste Maximise Profits 17th March 2009 Janette Ackroyd Envirowise Advisor
  2. 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. 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. 4. Risk Management • Insurance • Public image • Stakeholders • Regulators • Prosecution
  5. 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. 6. Principles of Resource Efficiency Understanding the Jargon
  7. 7. South East Ecological Footprint For all to live as we do we would need 3 ½ Planets!
  8. 8. Do you know how much wasting Do you waste resources is resources? costing your business?
  9. 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. 10. Resource Efficiency = Doing More with Less
  11. 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. 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. 13. What Should You Do With Your Business’ Waste? Your Options…
  14. 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. 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. 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. 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. 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. 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. 20. Resources wasted Profit wasted Cost saving opportunities missed Avoidable wastes sent to landfill Impacts
  21. 21. THE WASTE & RESOURCES HIERARCHY
  22. 22. Your business waste • Identify your key waste streams • Think about how they can be moved up the waste hierarchy
  23. 23. Now we know the principles…. The next step is looking at how to identify opportunities
  24. 24. 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
  25. 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. 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. 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. 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. 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. 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
  31. 31. 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
  32. 32. Measuring Resource Consumption: Where to find the figures Item Sources of information on costs Raw Materials Purchase records, stocktaking, dispensing records Energy Invoices, main meter, sub-meters, portable meters Water Invoices, main meter, sub-meters Products/by-products Production/sales figures, stocktaking Solid waste/ process Waste production records, invoices, disposal/Duty of Care residues documents, packaging waste forms, stocktaking Effluent Meters, invoices, effluent discharge consents Emissions to air Meters, analyses (of composition), process authorisations, solvent inventories Start by measuring your key raw materials and utilities, then measure the resources highlighted as significant during your waste mapping exercise.
  33. 33. Key Environmental Performance Indicators
  34. 34. Most gain with least pain
  35. 35. 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
  36. 36. 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
  37. 37. Design and the supply chain Average weekly shop in the UK Average weekly shop in China
  38. 38. 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
  39. 39. 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
  40. 40. 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)
  41. 41. Packaging indicator tool
  42. 42. Making it happen Developing an action plan and getting Management & staff buy-in
  43. 43. 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
  44. 44. 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
  45. 45. Motivate The Team Increase job satisfaction Encourage ideas Give clear guidance Reward receptiveness to change Recognise support from the team Engage staff in the development of plans
  46. 46. Action Plan Objective Usage Target Who By Potential Cost When Saving Reduce packaging 50 tonnes 30 tonnes S Waters 01/07/08 £???? per year on goods out pa pa Reduce electricity 180000 162000 D Jones 01/08/08 £2620, per year use in offices kWh pa kWh pa Reduce water use 300 cubic 250 cubic J Smith 01/07/08 £92 per year in toilets metres pa metres pa Draft environmental n/a n/a D Jones 01/06/08 n/a policy
  47. 47. 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
  48. 48. Cleaner design Advice Line Cleaner technology 0800 585794 Hazardous waste Key performance indicators Environmental management systems Managing change Packaging Resource efficiency Solvents and VOCs Waste management Waste Minimisation Water
  49. 49. Publications
  50. 50. 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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