NEW TECHNOLOGY FOR NEW TECHNOLOGY FOR SHREDDERSSHREDDERS

ISRI Operations ForumISRI Operations ForumJanuary 2007January 2007

Scott NewellScott NewellPresidentPresident

The Shredder Company, LLCThe Shredder Company, LLC

New Technology New Technology And the management of And the management of

productivity in shredding productivity in shredding plants.plants.

““Why do we care about new Why do we care about new technology?” Actually, the search technology?” Actually, the search for new technology is the search for for new technology is the search for improved productivity. improved productivity.

OUTPUT ÷ INPUT = OUTPUT ÷ INPUT = PRODUCTIVITYPRODUCTIVITY

Productivity is a kind of Productivity is a kind of measurement of efficiency. measurement of efficiency.

For the purpose of this presentation, For the purpose of this presentation, it is defined as the comparison it is defined as the comparison between inputs and outputs. In other between inputs and outputs. In other words, when the value produced is words, when the value produced is divided by everything that goes into divided by everything that goes into the process, the productivity of the the process, the productivity of the process is measured. process is measured.

If some change can be introduced to If some change can be introduced to the process that reduces input costs, the process that reduces input costs, and if the output value stays the and if the output value stays the same, or is increased, then we say same, or is increased, then we say that productivity has been increased. that productivity has been increased.

If the input costs increase, without a If the input costs increase, without a corresponding increase in the value corresponding increase in the value of the product, then we say that of the product, then we say that productivity has decreased. productivity has decreased.

Examples of inputs at a shredding plant are Examples of inputs at a shredding plant are such things as cost of raw material, amount such things as cost of raw material, amount of raw material, kinds of raw material, cost of of raw material, kinds of raw material, cost of amortization of the shredder, labor costs, amortization of the shredder, labor costs, power costs, repair and maintenance costs, power costs, repair and maintenance costs, dumping costs and general overhead costs. dumping costs and general overhead costs.

In short, everything that goes into the In short, everything that goes into the production can be considered as an input production can be considered as an input value. Anything in the input category that value. Anything in the input category that can cause a reduction in unit costs can be can cause a reduction in unit costs can be considered to increase productivity.considered to increase productivity.

Examples of outputs from a shredding Examples of outputs from a shredding plant are such things as tons of plant are such things as tons of shredded steel scrap, tons of non ferrous shredded steel scrap, tons of non ferrous metals that result as a co-product, the metals that result as a co-product, the value of steel scrap and the non ferrous value of steel scrap and the non ferrous metals per ton. metals per ton.

Anything that will result in increasing Anything that will result in increasing the value added to the product will the value added to the product will increase productivity, providing that the increase productivity, providing that the cost for the improvement is less than the cost for the improvement is less than the increased value. increased value.

So much for all of that, I believe that So much for all of that, I believe that we will all agree that if we can we will all agree that if we can increase the productivity of our increase the productivity of our shredding plants, it will be a good shredding plants, it will be a good thing. thing.

It will be something about which we It will be something about which we will expect our bosses, our bankers, will expect our bosses, our bankers, our wives (or husbands), and our wives (or husbands), and ourselves to be pleased.ourselves to be pleased.

In his excellent management book, "The Greatest In his excellent management book, "The Greatest Management Principle in the World", Dr. Michael LeBoeuf Management Principle in the World", Dr. Michael LeBoeuf tells a story tells a story

A weekend fisherman looked over the side of his boat and A weekend fisherman looked over the side of his boat and saw a snake with a frog in its mouth. Feeling sorry for the saw a snake with a frog in its mouth. Feeling sorry for the frog, he reached down, gently removed the frog from the frog, he reached down, gently removed the frog from the snake's mouth and let the frog go free. But now he felt snake's mouth and let the frog go free. But now he felt sorry for the hungry snake. Having no food, he took out a sorry for the hungry snake. Having no food, he took out a flask of bourbon and poured a few drops into the snake's flask of bourbon and poured a few drops into the snake's mouth. The snake swam away happy, the frog was happy mouth. The snake swam away happy, the frog was happy and the man was happy for having performed such good and the man was happy for having performed such good deeds. He thought all was well until a few minutes passed deeds. He thought all was well until a few minutes passed and he heard something knock against the side of his boat and he heard something knock against the side of his boat and looked down. With stunned disbelief, the fisherman and looked down. With stunned disbelief, the fisherman saw the snake was back----with two frogs!saw the snake was back----with two frogs!

This fable carries two This fable carries two important lessons:important lessons:

1.1. You get more of the behavior you You get more of the behavior you reward. You don't get what you hope for, reward. You don't get what you hope for, ask for, wish for or beg for. ask for, wish for or beg for. You get You get what you reward.what you reward.

2.2. In trying to do the right things it's so In trying to do the right things it's so easy to fall into the trap of rewarding the easy to fall into the trap of rewarding the wrong activities and ignoring or wrong activities and ignoring or punishing the right ones. The result is punishing the right ones. The result is that we hope for A, unwittingly reward B that we hope for A, unwittingly reward B and wonder why we get B.and wonder why we get B.

Therefore, in order to reward the Therefore, in order to reward the correct behavior regarding correct behavior regarding productivity, it is necessary to productivity, it is necessary to understand what is important.understand what is important.

One more illustration regarding the One more illustration regarding the importance of understanding the importance of understanding the value of productivity will be the value of productivity will be the value of one minute’s worth of value of one minute’s worth of shredder production. shredder production.

Value of one minute Value of one minute formulaformula

Margin after shrinkage + value of NF co-Margin after shrinkage + value of NF co-product per ton of steel shredded – direct product per ton of steel shredded – direct operating costs per ton*tons per hour operating costs per ton*tons per hour capacity / 60 minutes = Value of one minute.capacity / 60 minutes = Value of one minute.

Assume:Assume: $42 margin after shrinkage$42 margin after shrinkage $70 value of NF co-product per ton of steel $70 value of NF co-product per ton of steel

shreddedshredded $12 direct operating costs per ton (does not $12 direct operating costs per ton (does not

include fixed costs)include fixed costs) 100 tons per hour100 tons per hour$42 + $70 - $12 * 100 / 60 = $167 per minute$42 + $70 - $12 * 100 / 60 = $167 per minute

The numbers have been juggled a bit to The numbers have been juggled a bit to come up with a simple formula, but it is not come up with a simple formula, but it is not far from the actual situation today. It will far from the actual situation today. It will be easy for an operator to take a quick look be easy for an operator to take a quick look at this and say, “gosh,” I am shredding 50 at this and say, “gosh,” I am shredding 50 tons per hour so my cost is $80 per minute tons per hour so my cost is $80 per minute or 200 tons per hour so my cost is $320 per or 200 tons per hour so my cost is $320 per minute.minute.

In any event, it is a big number and we In any event, it is a big number and we want to reward increases in productivity, want to reward increases in productivity, which is what helps us to achieve success.which is what helps us to achieve success.

New Technologies for New Technologies for Shredding Plants Will Shredding Plants Will Increase ProductivityIncrease Productivity

Smart Shredding SystemsSmart Shredding Systems Smart Water Injection SystemsSmart Water Injection Systems

Infra-Red Camera EquipmentInfra-Red Camera Equipment Improved Magnetic SystemsImproved Magnetic Systems Improved Eddy Current Separation Improved Eddy Current Separation

SystemsSystems Sensor Sort TechnologySensor Sort Technology Simple Mechanical ImprovementsSimple Mechanical Improvements Other New DevelopmentsOther New Developments

Smart Shredding Smart Shredding SystemsSystems

Smart Shredding Systems (SSS) consist Smart Shredding Systems (SSS) consist of computer controls of the shredding of computer controls of the shredding process, measurement of events and process, measurement of events and production of management data.production of management data. Every shredder manufacturer today offers Every shredder manufacturer today offers

some version of a smart computer some version of a smart computer controlled shredder operation.controlled shredder operation.

PLC’s, touch screen monitors and real time PLC’s, touch screen monitors and real time data allow the shredder operator decisions data allow the shredder operator decisions to be made consistently and very, very to be made consistently and very, very quickly. quickly.

Why do almost all shredders Why do almost all shredders operate so far below their operate so far below their

shredding capacity?shredding capacity?

Horsepower available and Theoretical TPH capacityType kwh/ton*1000 1500 2000 3000 4000 6000 800060104 20 37 56 7580104 18 62 82 124 16598104 16 140 186 28120104 14 216 320 426124 13 344 460* Please note that these kwh per ton calculations are our best estimates and may not be exactly correct.

Shredders Operate Below Shredders Operate Below Capacity Because They Are Capacity Because They Are

Not Properly Being Fed Not Properly Being Fed Enough Raw Material!Enough Raw Material!

100

Percent Full Load Power

TIME

Graph of power usage versus time with typical shredder feeding system. Grey area represents potential for shredding but not being effciently used.

Smart Shredding System Smart Shredding System ControlsControls

100

Percent Full Load Power

TIME

Example of power usage versus time with the Newell Super Double Feed Roll (SDFR) feeding system.

Double Feed Roller Double Feed Roller DesignsDesigns

Require more HP on the hydraulic Require more HP on the hydraulic systems to turn the rollers faster.systems to turn the rollers faster. 300 HP and even up to 500 HP, in very 300 HP and even up to 500 HP, in very

high production shredders, is required to high production shredders, is required to control the speed of the DFR from zero control the speed of the DFR from zero RPM up to 22 RPMRPM up to 22 RPM

The SSS controls the feed roller speed The SSS controls the feed roller speed based on the:based on the: Amperage of the current on the main Amperage of the current on the main

electric motorelectric motor Thermal Capacity of the electric motorThermal Capacity of the electric motor

Understanding Thermal Understanding Thermal Capacity of an Electric Capacity of an Electric

MotorMotor The actual capacity of a motor is the thermal The actual capacity of a motor is the thermal

capacity, meaning how much heat can be capacity, meaning how much heat can be dissipated. The motor is designed to operate at dissipated. The motor is designed to operate at its full load amperage and to dissipate all of the its full load amperage and to dissipate all of the heat at that level. Many motors have a service heat at that level. Many motors have a service factor of 1.15 or 1.2, which means that they can factor of 1.15 or 1.2, which means that they can operate at 115 % or 120 % of the rated amperes. operate at 115 % or 120 % of the rated amperes.

Therefore, if a shredder motor is operating at Therefore, if a shredder motor is operating at 65% of its thermal capacity, it has the ability to 65% of its thermal capacity, it has the ability to work at over the rated amperes and is able to do work at over the rated amperes and is able to do so until it is operating at 100% of the thermal so until it is operating at 100% of the thermal capacity. capacity.

When the Thermal capacity of the motor is When the Thermal capacity of the motor is 65% or lower, the SSS runs the DFR at full 65% or lower, the SSS runs the DFR at full speed up to 140% of the full load amperage of speed up to 140% of the full load amperage of the main motor.the main motor.

When the Thermal capacity of the motor is When the Thermal capacity of the motor is more than 65% but less than 75%, the SSS more than 65% but less than 75%, the SSS runs the DFR at full speed up to 120% of the runs the DFR at full speed up to 120% of the full load amperage of the main motor.full load amperage of the main motor.

When the Thermal capacity is more than 75% When the Thermal capacity is more than 75% the SSS runs the DFR at reduced maximum the SSS runs the DFR at reduced maximum speed until the thermal capacity is reduced.speed until the thermal capacity is reduced.

The goal is to operate the shredder more The goal is to operate the shredder more closely to the full capacity of the main electric closely to the full capacity of the main electric motor.motor.

Hands Free OperationHands Free Operation

When the DFR hydraulic motor pressure When the DFR hydraulic motor pressure reaches a specified level, a signal is sent to the reaches a specified level, a signal is sent to the DFR hydraulic cylinders and the DFR is raised DFR hydraulic cylinders and the DFR is raised for a short time. As the DFR is in a float for a short time. As the DFR is in a float position, it “walks” over the top of the incoming position, it “walks” over the top of the incoming scrap, crushing and feeding it into the scrap, crushing and feeding it into the shredder. In this way the DFR is automatically shredder. In this way the DFR is automatically positioned to its most effective height.positioned to its most effective height.

The infeed conveyor speed is typically under The infeed conveyor speed is typically under the control of the operator, but it is possible to the control of the operator, but it is possible to automate that also.automate that also.

Smart Water Injection and Smart Water Injection and Infra Red Camera SystemsInfra Red Camera Systems

Almost all new shredding plants utilize a Almost all new shredding plants utilize a smart water injection system. This means smart water injection system. This means that a measured amount of water is injected that a measured amount of water is injected into the shredder to provide damp shredding. into the shredder to provide damp shredding. This controls dust, reduces the possibility for This controls dust, reduces the possibility for explosion and is in general very explosion and is in general very environmentally friendly.environmentally friendly.

Damp shredding does produce steam and Damp shredding does produce steam and restricts the vision of the shredder operator.restricts the vision of the shredder operator.

Infra Red camera systems provide the Infra Red camera systems provide the necessary information to the operator and are necessary information to the operator and are highly recommended. highly recommended.

Management DataManagement DataThe SSS reads real time information and prepares management reportsThe SSS reads real time information and prepares management reports

Tons per hour, day, month and year, both ferrous and waste Tons per hour, day, month and year, both ferrous and waste streamsstreams

Power consumption per ton of material processedPower consumption per ton of material processed Causes of down time and % for each category of downtimeCauses of down time and % for each category of downtime Provides trend analysis for DFR speed, bearing and winding Provides trend analysis for DFR speed, bearing and winding

temperatures, and what ever other information the operator temperatures, and what ever other information the operator desires.desires.

Real time tracking of the wear life of each castingReal time tracking of the wear life of each casting There is a kind of odometer for each wear part in the shredder.There is a kind of odometer for each wear part in the shredder. This creates a data base for understanding the cost of This creates a data base for understanding the cost of

operation and it provides an early warning if something is operation and it provides an early warning if something is going wrong.going wrong.

This goes back to our premise that we get the type of behavior that This goes back to our premise that we get the type of behavior that we reward. Understanding this data allows us to do a better job of we reward. Understanding this data allows us to do a better job of rewarding the right things.rewarding the right things.

Improved Magnetic Improved Magnetic SystemsSystems

Modern electro magnetic separation Modern electro magnetic separation drums are stronger, typically wider drums are stronger, typically wider and run cooler than older style and run cooler than older style magnetic systems.magnetic systems.

Feeding to drums is better Feeding to drums is better understood and systems are understood and systems are generally more efficient today than generally more efficient today than in the past.in the past.

Improved Eddy Current Improved Eddy Current Separation SystemsSeparation Systems

Eddy Current Systems (ECM) have been in Eddy Current Systems (ECM) have been in use for more than 20 years, but today’s use for more than 20 years, but today’s versions of the equipment are more efficient versions of the equipment are more efficient because of variable frequency, better because of variable frequency, better presentation of material to the ECM field, presentation of material to the ECM field, better protection of the drum from tramp fe better protection of the drum from tramp fe and better product.and better product. The ECM is much more efficient when working on The ECM is much more efficient when working on

similar size particles. That is why most modern similar size particles. That is why most modern plants have a trommel or screen ahead of the plants have a trommel or screen ahead of the ECM.ECM.

Most ECM’s produce long throw aluminum, zorba, Most ECM’s produce long throw aluminum, zorba, and a relatively clean non metallic waste material.and a relatively clean non metallic waste material.

Sensor Sort TechnologySensor Sort Technology

Sensor sort technology uses a sensor Sensor sort technology uses a sensor to identify a particle and air blast to identify a particle and air blast tubes to remove that particle from tubes to remove that particle from the product stream.the product stream.

This has proven to be very valuable in This has proven to be very valuable in mining the waste stream of material.mining the waste stream of material. Recovery of fractions of a percent of the Recovery of fractions of a percent of the

metal that was being lost will pay for this metal that was being lost will pay for this equipment in days, not months or years.equipment in days, not months or years.

Simple Mechanical Simple Mechanical ImprovementsImprovements

There are a number of very simple things There are a number of very simple things that are not considered high technology that are not considered high technology but that will pay huge dividends in any but that will pay huge dividends in any event. These include:event. These include: Putting higher side boards on infeed Putting higher side boards on infeed

conveyors and feed chutes.conveyors and feed chutes. Putting additional shielding on the DFR Yoke Putting additional shielding on the DFR Yoke

to prevent material from leaking out of the to prevent material from leaking out of the feed system.feed system.

Designing all transitions so that there is less Designing all transitions so that there is less leakage and less clean up.leakage and less clean up.

Other items with similar benefitsOther items with similar benefits

Other New DevelopmentsOther New Developments

There are a considerable number of projects There are a considerable number of projects under development around the world and under development around the world and some of them will eventually be available for some of them will eventually be available for improving our productivity.improving our productivity. Sensor sort equipment that can separate the Sensor sort equipment that can separate the

clean non ferrous metals from one another.clean non ferrous metals from one another. Sensor sort equipment that can separate plastic Sensor sort equipment that can separate plastic

from the product stream and perhaps will be able from the product stream and perhaps will be able to separate one type of plastic from another type.to separate one type of plastic from another type.

Gamma Ray identification of copper in product Gamma Ray identification of copper in product streams to allow shredder operators to guarantee streams to allow shredder operators to guarantee copper content.copper content.

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SummarySummary

Productivity is a good thingProductivity is a good thing New Technology can provide New Technology can provide

productivity improvements by:productivity improvements by: Providing better management data so that Providing better management data so that

we can reward behavior that is good for us.we can reward behavior that is good for us. Provide better mechanical controls of Provide better mechanical controls of

equipment.equipment. Adding value to the finished products.Adding value to the finished products. Lowering costs inputsLowering costs inputs