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 ½ 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

21. THE WASTE & RESOURCES
HIERARCHY

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 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. 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

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. 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. Key Environmental
Performance Indicators

36. Most gain with least pain

37. 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

38. 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

39. Design and the supply chain
Average weekly shop in the UK
Average weekly shop in China

40. 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

42. 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

43. 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)

44. Packaging indicator tool

45. Making it happen
Developing an action plan and getting
Management & staff buy-in

46. 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

47. 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

48. 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

49. 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

50. 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

51. 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

53. Publications

55. 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