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Loss Reduction Approach & Application Dressings Regional Workshop  Asia 2006

Pres 3. Loss Reduction Approach

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Loss Reduction Approach &Application

Dressings Regional Workshop – Asia 2006

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Dressings Regional Workshop – Beijing 06

What Is Raw Material Waste?Losses of the many materials used to make our products.Understand where our Raw Materials are used or are lostfrom Delivery to Dispatch?

DeliveryEggs

Oil

Known & Unknown Losses

DispatchManufacturing (Process)

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Understanding Loss – A StructuredApproach

Collect base/available information

Develop a mass balanceAnalyse Major users/generatorsIdentify Improvement MeasuresMaintain management control

Typically follows a 5 step approach

What is involved ……………………..?

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STAGE 3: ANALYSE MAJOR USERS / GENERATORSCompare

performance(benchmark)

Determineimprovementscope =gap

Assessperformance(standards)

Technical

investigation(checklists)

Analyse

STAGE 2: DEVELOP BALANCE

Collateavailable

information

Determinemajor users

Developoutline

balance

Improvebalance

(accountability)

Balancing

Measurement STAGE 1: COLLECT BASE INFORMATION

Identifyavailable

Information

Understandreasons forvariability

Determineassociated

costs

Identifymeasurement

gaps

STAGE 5: MAINTAIN MANAGEMENT CONTROL

Standardiseimprovements

Maintainmonitoringprogramme

Identifydeviation

fromstandards

Implementfurther

opportunitiesSustain

Improvement

STAGE 4: IDENTIFY IMPROVEMENT MEASURES

Confirmeffectiveness

Assess goodpractices from

other sites

Rank identifiedopportunities(cost benefit)

Implement noand low costopportunities

IdentifyOptions

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Identify Waste Minimisation Options- The Waste Hierarchy

ELIMINATE

MINIMISE

RE-USE RECYCLE

TREAT

DISPOSE

DESIRABILITY

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STEP 4 - Individual Wastes

- Measure / analyse- Define improvement options- Implement options- Improvement achieved

STEP 7 - StandardiseImprovements

- Conditions to maintain improvement- Identify needs e.g. training, new

procedures, work instructions etc

Technical investigation- Loss tree analysis- 5H + 1W analysis

Plant Utilization- why, why, why

Measurement definition- what, how, when

Data analysis- trend analysis

Identify options- opportunities

- good practices

Result check - improvementachieved

0

1000000

2000000

30000004000000

5000000

6000000

7000000

8000000

9000000

10000000

Department

Site Waste Balance

Kwh 292264437294041420244032209743163200281844927299062215165661613548833155163 67950

EnergyServices

ProductionArea2

ProductionArea1 ColdstoreEffluent Mixe CIPIlluminazioneBakery Varie Development MMD

ProductionAreas

General

52 % 13 %

7 % 6 % 6 % 5 % 5 %

4 % 1 % 1 % 1 % 0 %

STEP 3 - Set Priorities

- Key waste types- Major costs

STEP 6 - DetermineImprovement

- Identify savings achieved- Is there still a loss / gap ?

Example : Electricity Line 2 (Year 2)

400000

600000

800000

1000000

1200000

1400000

0 5000 10000 15000 20000 25000 30000 35000 40000

Production (Tonnes)

2001

2002

Target KWhr

STEP 5 - Confirm effectiveness - Compare result to target- Define new standards

WasteType

Target Sludge

Spent earth

Specific

Others

Mixed waste

Improvement Strategy

STEP 1 - Define Position- EPR KPI Information- Site environmental impact

NON HAZADOUS WASTE KG/TON

05

10152025

A R G

N A M E

T H P

C A H P

C E

H P C N

A

H P C L

A

I C F F G

U B F A

U B F E

U B F N A

U B F L A

Business Groups

N o n

H a z w a s

t e k g

/ t o n

2001 2002 2003

2001 17 .7 27 19 .7 79 4 .4 75 4 .5 96 8 .6 18 4 .3 85 2 3. 65 8 2 1. 78 9 11. 54 7 14 .6 13 10 .6 37

2002 12 .3 08 17 .115 3 .9 54 2 .9 14 8 .0 67 4 .4 27 19 .7 82 11. 13 6 9 .2 3 13 .6 78 14 .9 19

2003 15 .0 95 12 .114 4 .4 33 4 .4 72 8 .9 94 4 .10 6 16 .4 12 10 .3 29 9 .3 91 14 .2 36 13 .6 2

A RG N AM ET H PC A H PC E H PC NA HP CLA I CF FG U BF A U BF E U BF NA U BF LA Total waste

WasteType General

CanteenCardPaper

Organic

Target

to landfill

Sludge

Spent earth

Specific

Others

Mixed waste

STEP 2 - Determine gap - Define required position = TARGET- Identify gap between present and

target

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Dressings Global RM Waste ReductionProject

Challenge – 13 million Euro Global RM waste !

How should we approach this ?

Regional Focus & TeamsLocal Issues Resolved LocallyImplementation of Global Theme Learning's

Global ThemesCommon Issues - Do it Once & Roll Out

“Hands On” Support (SEAC, FRC)“Large Opportunity” Plants Global Themes

Phase 1 – Pilot Site Reviews to determine issues & focus

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Pilot Site Results - Baie d’Urfe (Canada)

Start-up waste25.01%

Overweight38.28%

Capped loss2.92%

Quality loss

0.17%

Uncapped loss0.97%

Shutdown waste

(including changeoverwaste)32.64%

Start-up wasteShutdown waste

Uncapped loss

Quality lossCapped loss

Overweight

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WASTE BC-2 2004(524.000 euro)

Hold-up+ start/stop

24%

Left over afterproduction

Incidents32%

sampling15%

Technical error s5%

Pilot Site Results – Delft (Holland)

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Mass Balancing – Accountancy

Traditional approach in many businesses is the“Accountancy” Mass Balance. On-going analysis (monthly reporting)Based on accountancy dataInflows: weight of all ingredients purchased

Outflows: all products producedZero Based Loss (ZBL)

Inputs (£,$, € , ¥) Output (£,$, € , ¥)

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Detailed Mass Balance

Product lossRecycled productGiveaway lossPackaging lossesLosses to wastewater

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Dressings Loss Reduction ProjectPilot Site Approach – Regional Roll Out

Standard loss tree- 100% accountability- major losses

Standard measurement / reporting format- Existing / additional requirements- Unpacked / packed losses / wastewater

Exchange of good practices

Loss reduction opportunities

- Pigging / HVLP / intelligent pipe- Add back systems

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Understanding Loss – Available SiteData

Assess what has already been done – TPM, Loss StudiesWhat is currently measured / reported – EPR return / Category InformationIf it isn’t measured – It can’t be

controlled.Identify gaps in existing knowledge.

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Understanding Loss – Sources of Loss

Plant CleaningControlled lossUncontrolled loss

Product changeovers

Product or raw material spillageOverfilling / giveawayStart-up and shutdownOff specification - packed / unpackedOthers?

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High number of SKUs / short run lengthsProduction schedulingMachine design / machine operationDedicated lines / flexible linesIncompatible productsUntrained operatorsOff specification

lack of raw material / insufficient operatorsOperational efficiency

Understanding Loss – Reasons forLoss

Many reasons why loss occurs – Examples

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SpillagesLeaksForced stoppages

Power outs,Clean Downs,Fire Drills or emergencysituations.

Vessel & Line Hold UpsOperator Error

Improving AccountabilityWhere could other losses occur?

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Shift Patterns – 1, 2 or 3 shift operationOperator Judgement and ProceduresType of packaging formatRun Length

Production schedule

Understanding Variability

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Where do losses Go?LandfillOverfillWaste WaterTheft?

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Wastewater is “Dilute” product Need to quantify material (product) sent to effluenttreatment plantInstigate period of detailed monitoring (3rd Party?) tomonitor influent for COD & TFM content of effluent (DiluteProduct)Push through and pack (Production Matrix) rather thanCIP to ETP

Losses to Wastewater

COD Flow

ppm or Mg/l m³/hr

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All events associated with production need to beidentified (i.e. Type of changeover – Pushthrough, full CIP)Exercise needed to accurately quantify lossesassociated with changeovers, start up & shutdown, Number Of?All Losses associated with each production runneed to be recorded – e.g. process log sheets.

Key areas of loss identified Accurate comparison of “what should have beenused” to “what was actually used

Tools - Bringing it all togetherImplementation of SLT

Aim - All Information collected and quantified in one place.