Module 3 A Closer look at Cleaner Production June 3, … · A Closer look at Cleaner Production June 3, 2013 Malolos City Prof. Nonita T Yap, SEDRD University of Guelph Canada . Cleaner

Module 3

A Closer look at Cleaner Production

June 3, 2013

Malolos City

Prof. Nonita T Yap, SEDRD

University of Guelph Canada

Cleaner production

5. Reuse & recycle waste

2. Reduce at source

3. Modify process 6. Substitute

product

4. Substitute inputs / Reformulate materials

7. Change technology

1. Good housekeeping

CP

tech

niq

ues

3

Approach How Reqts 1. Good Housekeeping

Preventing leaks and spills, instituting preventive maintenance

schedules, regularly checking equipment, making sure employees follow official work procedures.

Attention and time

2. Input Substitution

Substituting one or more less expensive, less dangerous, or more efficient input material for an existing input material.

Technical expertise

3. Process Modification

Changing working procedures, machine instructions, and process record keeping to increase throughput, reduce waste, and/or improve product quality.

Understanding of process

4. Equipment Modification

Changing the existing process equipment to increase throughput, reduce waste, and/or improve product quality.

Understanding of how equipment works

5. Product Modification

Changing the characteristics of a product to increase throughput, reduce waste, and/or improve product quality or durability

Technical expertise

6. Resource Recovery and Reuse

Capturing and reusing onsite, materials that were previously wasted.

Understanding of process

7. Off site

recovery and reuse Identifying an end market and marketing a material formally considered waste. May involve changes in processing of original product or new processing steps to transform waste.

Knowledge of production chain

8. Technology Change

Replacing the existing technology, changing the order of process steps to in to increase throughput, reduce waste, and/or improve product quality.

Capital cost

5- sigma

Audit andEducation

ProductReformulations

PHASE II (SOME ROI)

PH

AS

E III (L

ITT

LE

RO

I)

PH

AS

E I

(B

IG R

OI)

OP

ER

AT

ION P

RO

CE

SS

EQUIPMENT

WasteReduction

Waste

SegregationProcess

Changes

ComplexRecycling and

Refining or Reuse

SimpleRecycling

EquipmentModifications

Process

Control

Source

Treatment

GoodHousekeeping

(Mops and Sops*)

Raw Materialand Catalyst

Changes

Cle

an

er p

rod

uct

ion

str

ate

gie

s NOT ALWAYS TRUE – BIGGEST

WINNER FOR 3M

HOW DO CLEANER PRODUCTION INNOVATIONS IMPROVE BUSINESS SUCCESS?

Making the Business Case

5

What is waste?

6

Efficiency = the reduction of waste

?

“Waste is any material or

energy leaving the facility. . .”

Proactive

definition

Less strict

definition

“. . .not as part of the product.”

“… without first being used as

efficiently as possible.”

7

Definitions of

waste vary, but

ALL companies

generate waste as

part of their

operations.

!

Cleaner

production tools

assist business by

asking the 3

questions

8

Materials

Energy

Water

By-Products

Solid

Waste

(trash)

Air Emissions

Products

Heat

Loss

Hazardous

Waste

Waste-

water

INPUTS

WASTES

WASTES

Allowance breakage contaminated solids core loss customer returns damage

drainings dust evaporation furnace loss greenhouse loss hidden losses leakage

overfill non-conforming material packaging process loss rework second quality

stock loss washings

Waste comes in

many forms. . .

. . .and has many

different sources

9

What are the

costs

associated

with waste and

energy loss?

?

The true cost of waste can

be like a crocodile,

with only a small part

visible

10

See “the cost iceberg” in: Bierma, TJ., F.L. Waterstaraat, and J. Ostrosky. 1998.

“Chapter 13: Shared Savings and Environmental Management Accounting,” from The

Green Bottom Line. Greenleaf Publishing:England.

For every $1 of waste cost measured, another $2 - $3 of cost are “hidden” in the accounting records, or are not on the books at all

Companies typically underestimate how much waste really costs them, sometimes by several orders of magnitude

This applies even to big, well-managed companies too! 11

All waste has a cost—but the cost of some types of waste is far more significant than others.

Reducing waste saves these costs—but may also require initial investment and effort

Therefore, assessing the costs of waste it is essential to:

12

Identify the key

problems

that CP can address

Evaluate whether CP

measures are good

business decisions.

or ?

OVERVIEW: 1. Use process mapping as a tool to

understand flow of materials, energy, and waste

2. Assess costs to identify areas for efficiency improvement

3. If necessary, use Root Cause Diagnosis or Fishbone Diagram to figure out WHY a problem exists

4. Use option generation techniques to identify possible CP solutions

13

2

ID

oppor-

tunities

Prioritize

Evaluate Implement

Measure,

review

Get

organized

We will learn

about each of

these tools

Waste imposes costs

But problematic accounting practices hide its true costs

14

A. “Hidden” in the

accounting records

B. Misallocated from

overhead accounts

C. Mis-classified as fixed

when they are really

variable, or semi-variable

D. Not found in the

accounting records at all

Costs can be. . .

(Can you think of others?)

Manufacturer of high-end aluminum furniture

15

2%52%

per accounting

records

actual

MATERIAL LOSSES (as % of input)

Adapted from: Rooney, Charles. “Economics of Pollution Prevention:

How Waste Reduction Pays.” Pollution Prevention Review.Summer 1993.

Engineering

specification allowed

50% waste;

accounting records

only showed

waste/loss in excess

of specification

How did this happen?

A dairy cooperative in India (packaging milk in 1-liter plastic bags)

16

The amount of

plastic

‘pouches’

purchased

The amount of

final product

shipped

Accounting

records showed: ! Accounting records

did NOT show:

The amount of

solid scrap

waste generated

The amount of

any other lost

raw materials,

e.g., milk

The goal of Cleaner Production is to reduce variable costs (or prevent end-of-pipe fixed costs)

17

Therefore,

it is important to correctly

distinguish between fixed

and variable costs when

identifying and estimating

costs to support CP efforts

“If CP efforts

will reduce a

cost — then it is

variable!”

In general, as you go down this list, costs are more likely to be hidden or difficult to quantify.

(but every case is different!)

18

LESS

HIDDEN

MORE

HIDDEN

Equipment purchase,

direct materials, energy, labour

Waste disposal

Recycle/rework, treatment,

waste handling

Regulatory compliance,

other indirect costs

Company image, credibility

First, check the general

ledger & production

records to obtain all available

information about costs and

quantities of inputs and

outputs

19

The general ledger

[i.e., accounting

record]

contains only

external

transactions, not

internal flows

between

departments or

production steps.

It will show inputs

purchased and

goods sold.

However, physical

quantities (kg,

litres, kwh) of

inputs purchased

are often not

recorded.

Production

records contain

the volume of

goods produced

SOMETIMES, they

include

information such

as physical

quantities of

inputs used and

number of

rejected products.

1

20

Step 2 of the CP Process:

Identification of CP opportunities

FOCUS: process mapping

Module 3:

A closer look at CP

process and

tools/techniques for CP

implementation

ID

oppor-

tunities

Prioritize

Evaluate

Select

Implement Measure,

review

Get

organized

NO. Micro-enterprises rarely have any process documentation.

Small enterprises usually keep separate documentation by department or machine.

There is rarely documentation that makes connections between all process steps.

21

! Sophisticated SMEs

may have information

in the form of Flow

charts, Value stream

maps, Process and

instrumentation

diagrams, Machine

configurations, Arrow

diagrams, Box

diagrams, Floor plans,

etc. All are complex;

none replace a basic

process diagram!

22

Process maps. . .

Are a key tool for understanding the

production process

Makes relationships between

operations visible and lead to a

systems view of the business

Can be used to keep track of both

quantities of inputs and outputs

AND costs

Are extremely useful for helping

communicate CP opportunities to

management & all departments

Making a process

map is therefore

an essential part of

the identifying CP

opportunities.

23

PRODUCTION PROCESS /UNIT

OPERATION

OUTPUTS INPUTS

Water, air

Environmental resource

Equipment

Raw materials

Energy

Labour

Product (s)

By products

EXAMPLE

Other chemicals

Wastes. emissions Recycling?

INTEGRITY – all revelant environmmental impacts of the operations should be listed.

TRANSPARENCY /OBJECTIVITY – All the flow of materials and energy should be registered objectively

CONTINUITY – time period should be equal for all the areas (e.g., 1 yr)

PRACTICALITY/EFFICIENCY – to utilise all resources (time personnel, expenditures) register only the material and energy that are ecologically relevant

CONFIDENCE – the data collected should lead to plausible results

CLARITY – The results are unequivocal and useful from the perspective of decision making.

25

1 - Transport • Animals delivered in

trucks;

• Trucks are washed

2 - Holding &

Inspection • Animals are held in pens

& inspected.

• Condemned animals are

separated and killed.

fuel

Animals

dead on

arrival

Faeces, urine,

contaminated

water

Condemned

animals

water

Live

animals

Live

animals

Faeces, urine,

contaminated

water

water

Incineration

Wastewater treatment

26

4 - Evisceration & Splitting • Abdomen cut open & viscera removed

• Breastbone split

• Heart/liver/lungs removed;

• Head removed

• Carcass cut into two along the spine

• Hide removed

Energy (to sterilize

equipment)

Wastewater

Water

Intestines,

edible organs

Hides

Inedible offal & Parts

3 -

Stunning

& Bleeding Animals are first

stunned or killed,

and then bled

Carcass

blood

Faeces, urine,

contaminated

water

Water Disinfectant


Carcass

Disinfectant

Condemned parts

Incineration

27

5 -

Chilling Carcasses

refrigerated

overnight

water

wastewater

Energy (for

refrigeration)

6 - Cutting

& boning Carcasses are cut

into pieces for

retail, some bones

removed

7 -

Packaging


equipment &

refrigeration)

water

Bones

fat

Meat Carcass


equipment &

refrigeration) water

Leaks of refrigerant fluids (Ammonia, CFCs


28

Incineration Condemned animals

and parts

Rendering Parts and scraps

are rendered for

tallow

?

Waste treatment

processes

Secondary production

processes

And what other processes?

?

? ?

? ? ?

? ?

Some secondary production processes

List all the activities in your facility – including intermittent activities

Develop a process map of your facility

Be prepared to present your results to your peers

29

30

Step 2 of the CP Process:

Identification of CP opportunities

FOCUS: Root cause analysis

Module 3:

A closer look at the CP

process and

tools/techniques for CP

implementation

ID

oppor-

tunities

Prioritize

Evaluate Implement

Measure,

review

Get

organized

Now, you have ◦ Gathered cost information ◦ Made a process map

As a result: you understand the costs of waste & have identified key inefficiencies/ problems.

But: no solution is possible without understanding the CAUSE of the problem(s).

31

Sometimes, the cause

of the problems is

clear.

Sometimes it is not !

THE WHY QUESTION

If the “root cause” of a problem is not clear, what do we do?

32

?

Root

cause

analysis

A fishbone (Ishikawa) diagram

it divides all causes into four categories:

Possible causes in each category are then systematically identified.

ALTERNATIVELY or in addition: Do a Critical points analysis – e.g., HACCP in food industry

33

Materials

is a simple tool for identifying

the true causes of a problem.

Machinery

Manpower Methods

A CP analysis of a bakery identifies BURNED BREAD as the main problem.

Burned bread is a waste with high costs!

◦ Cost of inputs (flour, yeast, sugar, etc.)

◦ Cost of labor to make the bread ◦ Cost of fuel for the oven ◦ Lost profit ◦ And. . . If the incidence of burned

bread is reduced, the business can expand without buying a bigger oven!

34

CLASS

EXERCISE

Identifying CP options requires

understanding the cause of the burned bread

problem.

We start by identifying Sunrise’s:

35

CLASS

EXERCISE

materials

machines

people

methods

Flour +

Oven + ??

Employees

Bread recipes + ??

Now, we draw our “fishbone diagram”. . .

36

Burned bread

Machinery Material

People Methods

Oven

Pans

Door seals poorly so

oven heats unevenly

Some pans are

blackened

. . .and identify possible causes in each category.

flour

Poor

Training

New

supplier

New staff

Oven repair

manuals

Print hardly legible

Waste Problem

37 The diagram can get complicated!

Once you have identified possible root causes, how do you know which one(s) are real? ◦ In a real situation, those who

know the process best should participate in making the “fishbone diagram”

◦ Questions can be resolved by talking to employees and observing the production process

38

The key lies in …

Listening as the Chinese mean it

40

Keep in mind the

80/20 rule (20% of

causes account

for 80% of

problems), so

focus on the big

issues and avoid

dwelling on

smaller items

Often, people focus

on the obvious

solution rather than

best solution.

Identifying root

causes helps to

identify solutions that

solve the problem at

the source.

Identify the waste of biggest concern in your enterprise – environmental or financial

Identify the various causes of the waste using a fishbone diagram

Be prepared to present your results.

41

1. Remember the “Pareto Principle” (or the “80/20 rule”)

2. DO prioritize both short-term & long-term opportunities. . .

3. BUT, implement “low hanging fruit” FIRST

42

How do you prioritize strategically?

Consistently, about 20% of

improvement opportunities

provide approximately 80%

of cost savings. Look for

this 20%!

CP opportunities that are

easy and low-cost to

implement, and which

provide appreciable cost

savings almost immediately.

Use these immediate

successes to build support

for longer-term CP efforts.

LOW-HANGING FRUIT are

43

Sources of non-product loss

To

tal c

os

t* b

y s

ou

rce

*total cost=purchase, disposal & management costs

of material purchased but disposed of as waste

A & B account for about

80% of the total costs of

non-product loss

44

“Experience shows that

for the smallest

enterprises, simple

payback of a year or

less is a good rule of

thumb.

Assume that we have evaluated

the potential CP opportunities

from a financial perspective.

However, financial considerations are only one element

of deciding to implement a

project

45

How do you

weigh all these

considerations?

? Technical

Financial

Organizational

Regulatory

A number of decision-making aides for prioritizing CP options exist

However: Decision-making aides can’t make a decision for you! They can only facilitate systematic consideration of the issues involved.

46

!

Some examples

Waste is inefficiency and imposes many costs on businesses. Its true cost is often hidden.

47

Via the CP process, we

identify the true costs

of waste, prioritize

problems and CP

options, and implement

these priorities

systematically.

Measure &

review

1

2

3

Get

organized

Identify CP

opportunities

Evaluate

&Prioritize

Implement4

5

48

Start with the Production Process

TECHNOLOGY

INPUT

MATERIALS

OPERATION

PRODUCTS PRODUCTION

PROCESS

WASTE &

EMISSIONS

Option 1: Good operation practices

TECHNOLOGY OPERATION

PRODUCTS

PRODUCTION PROCESS

> Production scheduling

> Energy management (peak shaving)

> Good working instructions and procedures

> Training and incentives program

> Adequate process control operations

> Proper maintenance and cleaning WASTES &

EMISSIONS

INPUT MATERIALS India dairy

milk souring

Philippines crab processing plant

Philippine canned laing

producer

Option 2 &5: reduce, reuse and recycle


PRODUCTION PROCESS

2& 5/ On-site reuse & recycle: > On site reduction, recycling & re-use of raw

materials in the process, waste water, waste

heat and cooling water

> Transforming waste into useful by-products

> Waste segregation and storage WASTES &

EMISSIONS

PRODUCTS

INPUT MATERIALS India dairy broken plastic bags & WTP sludge

- impact on microclimate

Option 4: Input material substitution


PRODUCTS

PRODUCTION PROCESS

WASTES &

EMISSIONS

> Replacing toxic or harmful materials

with less toxic > Use of renewable or

recycled materials > Use materials with

longer lifetime > Material purification

INPUT MATERIALS

Malawi Bata Shoes and foreign currency: trading

of old plastic shoes– melted back ,

retransformed to resin

PRODUCTS

Option 6: Product modification


PRODUCTION PROCESS

> Recycling-friendly design

> Product life extension

> More efficient, less material

intensive packaging

> Reduction of harmful substances.

WASTES &

EMISSIONS

INPUT MATERIALS

Removal of lead from wine lids

Thinner plastic water

bottles

Option 3&7: Process &

Technology change

TECHNOLOGY

OPERATION

PRODUCTS

PRODUCTION PROCESS

> Replacing equipment

> Equipment modification

> Optimising process conditions

> Increased automation

> Improved process control

> Improved equipment lay-out

WASTES &

EMISSIONS

INPUT MATERIALS

Zimbabwe metal plating plant: placing rinse baths closer

with drip pans at angles

Car body painting -

powder coating instead

of conventional air

atomized spray

55

Documents

Module 3 A Closer look at Cleaner Production June 3, … · A Closer look at Cleaner Production June 3, 2013 Malolos City Prof. Nonita T Yap, SEDRD University of Guelph Canada . Cleaner