CUTTING COSTS BY REDUCING WASTE - p2infohouse.org · (GG38) Cutting Costs by Reducing Waste: A...

ENVIRONMENTAL

TECHNOLOGY

BEST PRACTICE

PROGRAMME

GG106GUIDE

CUTTING COSTS BY REDUCING WASTE: Running a workshop to stimulate action

© Crown copyright. First printed January 1998.

This material may be freely reproduced except for sale or advertising purposes.

Printed on paper containing 75% post-consumer waste.

CUTTING COSTS BY REDUCING WASTE: Running a workshop to stimulate action

This Good Practice Guide was produced by the

Environmental Technology Best Practice Programme

Prepared with assistance from:

William Battle Associates

The Environmental Technology Best Practice Programme is a joint Department of Trade and Industry

and Department of the Environment, Transport and the Regions programme. It is managed by

AEA Technology plc through ETSU and the National Environmental Technology Centre.

The Programme offers free advice and information for UK businesses and promotes

environmental practices that:

■ increase profits for UK industry and commerce;

■ reduce waste and pollution at source.

To find out more about the Programme please call the Environmental Helpline on freephone

0800 585794. As well as giving information about the Programme, the Helpline has access to

a wide range of environmental information. It offers free advice to UK businesses on technical

matters, environmental legislation, conferences and promotional seminars. For smaller

companies, a free counselling service may be offered at the discretion of the Helpline Manager.

FOR FURTHER INFORMATION, PLEASE CONTACT THE ENVIRONMENTAL HELPLINE

0800 585794e-mail address: [email protected]

world wide web: http://www.etsu.com/etbpp/

This Good Practice Guide is designed for organisations and individuals wishing to organise aworkshop on waste minimisation. The aim of this workshop is to convince delegates of thecost benefits of implementing a structured approach to waste minimisation and explain whatthey need to do to achieve quick savings. The workshop is based on Good Practice Guide(GG38) Cutting Costs by Reducing Waste: A Self-help Guide for Growing Businesses, alsopublished by the Environmental Technology Best Practice Programme.

Even efficient companies produce waste. The true cost of waste is typically 4% of turnover- but with the right measures, this can easily be reduced by a quarter. Waste minimisation orwaste reduction represents a major opportunity for companies to cut their costs for much lesseffort than is needed to generate the same increase in profits via increased business.

Encouraging local companies to undertake a waste minimisation initiative represents animportant new opportunity for Business Links and similar organisations.

Inside this Guide you will find worksheets, checklists, overhead templates and other relevantinformation to photocopy. These are bound into the Guide and can be found within theAppendices. A pocket is provided in the inside front cover of the Guide for storingphotocopies.

Although this Good Practice Guide aims to tell you all you need to know to run a workshop,further advice and support is available from the Environmental Technology Best PracticeProgramme. Just phone the Environmental Helpline on 0800 585794.

W E L C O M E

Section Page

1 Introduction 1Purpose of this Guide 1Who should use this Guide? 1Workshop objectives 1Who does what? 2

2 Organising the workshop 4Venue 4Programme 4Invitation letters 4Adding local flavour 5Registration 5

3 The workshop structure 6Syndicate groups 6

4 Session plan 8Session 1 Introduction 8Session 2 What is waste minimisation? 9Session 3 An introduction to GG38 Cutting Costs by Reducing Waste: 12

A Self-help Guide for Growing BusinessesSession 4 An introduction to the process flowsheet 15Session 5 Developing a process flowsheet - syndicate workshops 16Session 6 Syndicate reporting 18Session 7 Identifying waste minimisation opportunities 19Session 8 Developing an action plan 20

5 Closing remarks 23

Continued overleaf

C O N T E N T S

Section Page

AppendicesAppendix 1 Co-ordinator’s checklist 24Appendix 2 Workshop checklist 25Appendix 3 Workshop agenda 26Appendix 4 Sample invitation letter 27Appendix 5 Exit questionnaire 28Appendix 6 Order form for GG38 and Helpline publicity 29Appendix 7 List of overheads 30Appendix 8 Overhead templates 31

A8.1 Waste minimisation for Business and the environment 32A8.2 Workshop objectives 33A8.3 Agenda 34A8.4 Why waste minimisation? 35A8.5 Obvious waste costs 36A8.6 Hidden waste costs 37A8.7 How much does waste cost? 38A8.8 Stages in waste minimisation 39A8.9 Take a fresh look at your business 40A8.10 Case Study at Applied Biosystems 41A8.11 What to do with waste? 42A8.12 A structured approach to waste minimisation 43A8.13 Cutting costs by reducing waste (1) 44A8.14 Cutting costs by reducing waste (2) 45A8.15 Five steps for successful waste minimisation 46A8.16 Opportunity checklist 47A8.17 Process inputs and outputs 48A8.18 The process flowsheet 49A8.19 Example process flowsheet 50A8.20 The process flowsheet 51A8.21 Worksheet 2 - Identifying waste using the waste tracking model 52A8.22 The seven elements of waste 53A8.23 ‘Cause and effect’ diagram 54A8.24 Generating ideas 55A8.25 The action plan 56A8.26 The three steps for quick savings 57A8.27 When you get back... 58

Appendix 9 Two worksheets from GG38 59

C O N T E N T S ( c o n t i n u e d )

PURPOSE OF THIS GUIDE

This Guide is designed for people who wish to run a waste minimisation workshop usingmaterial published by the Environmental Technology Best Practice Programme. The workshopshould enable each delegate to:

■ understand the benefits of a structured approach to waste minimisation;

■ appreciate how to use a process flowsheet methodology to identify waste;

■ work out the true cost of waste to their company and where savings may be made;

■ develop an action plan based on implementing waste reduction measures in priorityareas.

The workshop is based on Good Practice Guide (GG38) Cutting Costs by Reducing Waste: ASelf-help Guide for Growing Businesses published by the Environmental Technology BestPractice Programme. This and other Programme publications are available free of charge toUK businesses through the Environmental Helpline on 0800 585794.

Although GG38 has been designed as a do-it-yourself (ie self-assessment) waste minimisationtool for individuals, experience has shown that its message is more effective if used in aworkshop context. This gives delegates from different companies the opportunity to interactand learn from one another. However, the workshop can also be used to set up an in-houseinitiative by drawing on delegates from the same company.

WHO SHOULD USE THIS GUIDE?

This Guide has been designed for use by business support organisations. Likely users include:

■ Business Links;

■ Local Enterprise Companies (LECs) and Local Enterprise Trusts (LETs);

■ local authorities;

■ the Environment Agency;

■ environmental business clubs;

■ consultants.

Running a waste minimisation workshop provides an opportunity for organisations todevelop the services available for local businesses.

WORKSHOP OBJECTIVES

This workshop is about the key business issues of survival and profitability. Environmentalregulations and customer pressures for improved environmental performance can sometimesbe viewed by business as a threat. They may also be perceived as creating significantadditional costs for the company.

Most companies are unaware of the true cost of waste to their business. Typically, this is 4 - 5% of turnover and can be as high as 10%. Applying the structured approach to wasteminimisation described in GG38 has proved extremely powerful and has produced outstanding

1

I N T R O D U C T I O N1

section

1

GG106 published by the Environmental Technology Best Practice Programme. Helpline: 0800 585794

results with savings of at least 1% of turnover. These savings go straight to the bottom lineand require much less effort than is necessary to generate the same increase in profits fromwinning new business. Waste minimisation may also produce useful marketing benefits.

A waste minimisation programme can also generate opportunities for companies to establishcloser links with customers and suppliers. The development of new products fromsustainable resources is another possibility.

The objectives of the workshop are to enable delegates to:

■ use GG38 effectively;

■ be able to conduct a self-assessment of waste within their own companies;

■ develop the understanding necessary to develop a waste minimisation action plan.

It is not intended that delegates complete the self-assessment during the workshop. Theworkshop will provide delegates with an introduction to the structured approach to wasteminimisation described in GG38 and the tools to conduct a more detailed self-assessmentwith their colleagues.

WHO DOES WHAT?

Each workshop is likely to need:

■ a co-ordinator to organise and administer the workshop;

■ people to make presentations;

■ people to lead the syndicate exercises.

One person may perform all three of these roles, but you should plan to have onesyndicate leader for every 10 - 15 delegates.

All that is needed to present the workshop is this Guide and a copy of Good Practice Guide(GG38) Cutting Costs by Reducing Waste: A Self-help Guide for Growing Businesses.

Co-ordinator’s role

The job of the co-ordinator is to:

■ plan the workshop and the half-day programme;

■ identify the speakers and syndicate leaders, and then organise their involvement in theworkshop;

■ identify and recruit delegates;

■ organise the venue;

■ liaise with the Environmental Technology Best Practice Programme regarding supportmaterial;

■ liaise with other business support organisations to avoid duplication of effort.

Experience has shown that early planning and good communication are essential to thesmooth running of the workshop.

Before you organise a workshop, you may benefit from attending a similar workshop.Alternatively, you may be able to obtain telephone support from the Environmental Helplineon 0800 585794.

During the workshop, you should ensure that delegates are told how to obtain follow-upadvice and help from your organisation and the Environmental Technology Best Practice

2

section

1


Programme. Delegates should be told about the free information on environmental issuesavailable from the Environmental Helpline (0800 585794) and the free counselling visitsoffered by the Helpline to companies employing fewer than 250 people. This service, whichis described in a leaflet (ET10) available from the Helpline, provides a short site visit and awritten report highlighting the opportunities for waste minimisation and cleaner technology.

A checklist for co-ordinators is given in Appendix 1.

The role of syndicate leaders

A syndicate leader does not need to be an expert in waste minimisation, but should be ableto lead a group through a self-assessment process. However, syndicate leaders must be ableto enthuse and prepare delegates for the work necessary to achieve cost savings for theircompany.

Ideally, a syndicate leader should have:

■ experience in conducting open training seminars with delegates from small tomedium-sized enterprises (SMEs);

■ knowledge of local business support services;

■ consultancy and/or business counselling experience with SMEs;

■ an understanding of process flowsheeting.

To maximise the benefits of audience participation, syndicate leaders should be able tofacilitate discussions. Experience suggests that the characteristics of a good syndicate leaderinclude:

■ confidence in front of an audience;

■ ability to listen and summarise ideas;

■ ability to engage and encourage people in discussion;

■ ability to ask relevant questions;

■ knowledge of ‘what makes a business tick’;

■ experience of training small groups.

The syndicate leader has to strike a balance between asking questions, directing the groupand allowing the group to interact and generate its own ideas.

The role of speakers

Speakers should be able to present information on waste minimisation clearly, highlightingthe business benefits of undertaking good environmental practice. An ideal presentation willgenerate enthusiasm in its audience.

Although the whole workshop programme (see Section 3) can be presented by one speaker,it may be easier to maintain delegates’ interest by using two or three speakers to cover theinformation presented at the workshop. Speakers could include the co-ordinator, syndicateleaders or invited speakers.

Session 2 of the workshop includes a company Case Study. However, someone from a localcompany speaking about what the company has done to minimise waste is likely to havemuch more impact.

Using speakers with good presentational skills helps to make the day run smoothly. However,experience has shown that the message from company speakers is more important than thedelivery style.

3

section

1


The event should be organised to demonstrate to delegates the practical benefits of wasteminimisation. It may form part of a series of workshops organised for the target audience.The success of the workshop will depend on both its content and, critically, on how smoothlyit runs.

VENUE

The co-ordinator will need to select a suitable venue. The choice of venue will depend on:

■ the number of delegates;

■ the number of syndicate groups;

■ availability;

■ cost;

■ convenience for target audience.

One main room is required, and ideally, one syndicate room for each syndicate group. Themain room should be laid out ‘theatre’ style, with rows of chairs facing the front. Thesyndicate rooms should be organised in an informal grouping around a flip-chart.

The main room could be used by one syndicate group although this will require somereorganisation during a suitable break. If the room is large enough, and the acoustics allowit, it may be possible to run two or more syndicate groups in the main room.

Typically, there will be 10 - 15 delegates in each syndicate group. The number of delegatesinvited therefore depends on the number of syndicate leaders available; total numbers shouldbe a multiple of, say, 15, to allow for non-attendees on the day.

A checklist of equipment requirements, etc, is given in Appendix 2.

PROGRAMME

The workshop is designed to last for half a day, with a 15 minute break for tea/coffee. Acopy of a typical workshop agenda is provided in Appendix 3. This agenda can be varied tosuit local resources and bias as suggested below.

INVITATION LETTERS

Invitation letters should be sent out approximately five weeks before the date of theworkshop. To attract suitable delegates, it is usually necessary to send out a minimum of 400invitations in order to attract the desired number of 20 delegates. A sample letter is given inAppendix 4. The letter should be addressed to senior managers in each company, eg themanaging director or environmental manager.

You may find that you get a better response by targeting specific companies such as thosethat have attended previous courses or are registered under ‘Investors in People’.

Telephoning a fortnight before the event may be necessary to remind prospective delegatesabout the workshop and its relevance to their company’s goals.

4

section

2


O R G A N I S I N G T H E W O R K S H O P2

ADDING LOCAL FLAVOUR

Inviting a representative from a local company to present a Case Study in person helps toenthuse delegates about waste minimisation. Alternatively, you may wish to invite someonefrom a particular sector that you feel would be relevant to the delegates. This presentationshould replace the example Case Study from Applied Biosystems in Session 2.

If possible, this presentation should be limited to ten minutes.

You may wish to ask the company representative to join you and the delegates for coffeeduring the registration period.

Failing a personal recommendation, you will find it helps to give examples of local companiesthat have implemented a waste minimisation programme and the benefits they haveachieved.

REGISTRATION

On registration, each delegate should be given a pack containing a copy of:

■ Good Practice Guide (GG38) Cutting Costs by Reducing Waste: A Self-help Guide forGrowing Businesses;

■ the agenda (see Appendix 3);

■ a list of delegates expected;

■ an exit questionnaire (see Appendix 5);

■ publicity material from your organisation;

■ details of other local support services (if appropriate);

■ the flyer (ET10) describing the services offered by the Environmental Helpline;

■ a list of relevant, free publications from the Environmental Technology Best PracticeProgramme.

An order form for you to use to obtain sufficient copies of GG38 and the Helpline flyer isprovided in Appendix 6.

Selected publications from the Environmental Technology Best Practice Programme should beeither displayed or given to delegates. All Programme publications and a general publicationslist are available through the Environmental Helpline on 0800 585794.

The exit questionnaire (see Appendix 5) provides you with the opportunity to canvas ongoinginterest, eg support for a waste minimisation network in your area. You may wish toincorporate the questions on this within any existing questionnaire that you use.

A list of suggested overheads is given in Appendix 7 and a complete set of overheadtemplates is provided in Appendix 8. A pocket is provided in the inside front cover of thisGuide for storing photocopies made from these templates.

5

section

2


The workshop is planned to last for a half day. A copy of the agenda - giving timings for amorning workshop - is provided in Appendix 3.

Table 1 provides an overview of topics covered in the eight sessions and lists the overheadsneeded for each session. A list of all the overheads is given in Appendix 7. More detailedinformation on the material covered in each session and a breakdown of the time needed foreach overhead are provided in Section 4. A complete set of overhead templates is given inAppendix 8. You will find these overheads simple to use once you have familiarised yourselfwith the information and appreciated how the key messages are delivered.

SYNDICATE GROUPS

During Session 5, delegates will work in syndicate groups of 10 - 15 people. Each group willdevelop a process flowsheet for a company selected from the companies represented at theworkshop. Each group will then report on its work during Session 6.

It is therefore necessary to ask a number of companies to volunteer to be the subjects of thesyndicate groups. You will need one per group. Provided the company delegate can beguaranteed to attend, this is best arranged in advance. However, it may be necessary to askfor volunteer companies during registration. It is advisable to have in mind an examplecompany that the syndicate leader is familiar with, in case a volunteer company cannot befound for one of the groups.

6

section

3


T H E W O R K S H O P S T R U C T U R E3

Table 1 Workshop structure

Session Length Topics covered Overheads(minutes)

1 Introduction 10

2 What is waste minimisation? 30

3 An introduction to (GG38) 30 Cutting Costs by Reducing Waste: A Self-help Guide for Growing Businesses

4 An introduction to the 15process flowsheet

5 Developing a process flowsheet 60syndicate workshops

6 Syndicate reporting 15

7 Identifying waste minimisation 10opportunities

8 Developing an action plan 35

7

section

3


■ Workshop format and objectives 1 - 3

■ Key drivers 4 - 9

■ What is waste and how much does it cost?

■ The need to take a fresh look at your business

■ Case Study 10

■ The Government’s waste 11 - 16management hierarchy

■ A structured approach to waste minimisation

■ Process inputs and outputs 17 - 19

■ Example process flowsheet

■ Process flowsheets for pilot companies 20 - 21

■ Measuring and costing waste

■ Group reports on the process flowsheet 22developed for their pilot company

■ The seven elements of waste

■ Using the ‘cause and effect’ diagram 23 - 24

■ Generating ideas

■ Action plan 25 - 27

■ The three steps for quick savings

■ Getting started

SESSION 1 INTRODUCTION

Overhead Time NotesNo Title (minutes)

1 Waste minimisation for Business 4 ■ Welcome delegates.and environment ■ Introduce yourself.

■ Stress that the workshop will be aboutbusiness with a big ‘B’ and environmentwith a small ‘e’.

■ Emphasise that savings of 1% or more ofturnover can be achieved through wasteminimisation.

2 Workshop objectives 3 ■ Explain that the aim of the workshop is tohelp delegates undertake a structuredreview of waste within their business andthus save money by reducing waste.

■ Point out that GG38 is intended to be atoolkit for self-assessment.

3 Agenda 3 ■ Explain the format of the workshop and thesession contents.

■ If present, introduce the local companyrepresentative giving a presentation inSession 2.

Total time 10

Overhead 1 Waste minimisation for Business and environment

This approach is about providing tangible business benefits by taking a structured look atwaste within a business. It is about business with a big ‘B’ and environment with a small ‘e’.It is not about waste disposal problems - it’s about saving money through waste minimisation.The key fact about waste is that it costs companies more money than they realise.

Financial savings of 1% or more of turnover can be achieved and delivered to the profit lineof the balance sheet.

Overhead 2 Workshop objectives

The purpose of this workshop is to make delegates familiar with a straightforward,commonsense approach to waste minimisation. Such an approach is described in GoodPractice Guide (GG38) Cutting Costs by Reducing Waste: A Self-help Guide for GrowingBusinesses - just one example of the publications produced by the Environmental TechnologyBest Practice Programme to help companies reduce the costs of waste effectively.

At the end of the workshop, delegates should be able to return to their businesses and undertakea structured evaluation of waste within their company. They should use GG38 to help them:

■ undertake a structured review of how waste arises in their business;

■ develop solutions using problem-solving techniques;

■ reduce costs and improve environmental performance.

8

section

4


S E S S I O N P L A N4

A copy of GG38 must be included in the information pack given to delegates on registration.You may wish to suggest that delegates refrain from trying to follow GG38 as you talk, butinstead keep it for when they get back to work.

Overhead 3 Agenda

At this stage, emphasise to delegates that an open, frank and informal approach is neededfor them to achieve maximum benefit from the workshop.

During the syndicate group session (Session 5), volunteers will be asked to show how theprocess flowsheet approach can be used in their company. This exercise will provide ‘appliedlearning’ for all the delegates, but volunteers will get a head start on identifying the costbenefits of waste minimisation at their site.

SESSION 2 WHAT IS WASTE MINIMISATION?


4 Why waste minimisation? 5 ■ Explain the benefits of taking a pro-activestance on environmental issues.

■ Describe these benefits.

5 Obvious waste costs 3 ■ Disposal and effluent costs can be measuredeasily.

6 Hidden waste costs 3 ■ Stress the need to consider waste in a broadsense.

7 How much does waste cost? 3 ■ Hidden costs of waste are higher thanobvious ones.

8 Stages in waste minimisation 3 ■ Waste minimisation is primarily concernedwith management issues and the normaldecision-making process.

9 Take a fresh look at your business 3 ■ Ask delegates to keep an open mind abouttheir business processes and to be preparedto take a ‘birds-eye’ view of their businessand its procedures.

Either:Case Study from the representative 10 ■ Invite the representative to describe the of a local company benefits of adopting a structured approach

to waste minimisation.

Or:10 Case Study at Applied Biosystems 10 ■ Use the Case Study to demonstrate the

financial savings and environmental benefitsof adopting a structured approach toevaluating waste.

■ Emphasise that Applied Biosystems used theapproach described in GG38.

Total time 30

Overhead 4 Why waste minimisation?

Too often environmental concerns and environmental regulation are seen by industry as athreat, when in fact, they are an opportunity. Due to increasing public awareness ofenvironmental issues, the industries that are likely to flourish over the next few years are thosewhich have taken environmental considerations firmly on board.

9

section

4


Companies are coming under increasing pressure to demonstrate environmentalresponsibility. Legislation, customer pressure and competitive advantage are the key drivers.

The benefits of being environmentally aware and reducing environmental risks include:

■ reduced energy and waste disposal costs;

■ reduced insurance premiums;

■ improved public image;

■ increased sales.

Overhead 5 Obvious waste costs

Most companies can readily identify the costs of solid waste disposal and effluent discharge - the accounts department will have the bills for these items.

Overhead 6 Hidden waste costs

The cost of waste isn’t just the cost of the skip. The true cost includes the value of the itemsin the skip as well. This cost can include:

■ scrapped raw materials;

■ the labour involved in producing scrapped, part-finished goods or rejects;

■ the energy consumed making scrapped, part-finished goods or rejects;

■ the value of lost sales from eg rejects.

Overhead 7 How much does waste cost?

As a rule of thumb, waste is usually ten times a company’s original estimate. The example ofthe Leicestershire Waste Minimisation Initiative is often used. The ten companies involved inthis project originally guessed that their joint total waste costs were £500 000/year. Followinga survey of their facilities, this figure was revised to over £13 million/year - equivalent to 4.5%of their joint turnover.

Overhead 8 Stages in waste minimisation

The cycle for introducing waste minimisation is concerned with the normal decision-makingprocess. It requires commitment from management, then establishing the current level andcost of waste (ie a ‘baseline’), and the assessment and implementation of options for change.It is important that measurements are made to show that benefits have been achieved.

The process is cyclic - there is always more to do and more benefits to be found.

Overhead 9 Take at fresh look at your business

Waste minimisation undertaken as part of an environmental initiative can be a very effectivemethod of making a detached and systematic evaluation of the business and its processes.This approach will lead managers to ask the question:

■ Why do we do things this way?

- or even

■ Why do we do this at all?

This procedure provides an ideal opportunity for action following a ‘Business Health Check’.

10

section

4


Overhead 10 Case Study at Applied Biosystems

This overhead and material should be omitted if a representative from a local company is ableto present a Case Study. If time allows, encourage questions from delegates.

This Case Study demonstrates the cost savings and environmental benefits from using GG38to implement a systematic waste minimisation programme.

First year cost savings of £44 000 and total potential savings of £92 000/year have beenidentified by Applied Biosystems, part of the Perkin-Elmer Group. Applied Biosystemsemploys 119 people in the production and sales of chemicals for use on instrumentation inthe life sciences field.

Using the opportunity checklist from GG38, Sue Gupwell (Environmental, Health and SafetyOfficer) identified the disposal of empty chemical drums as a potential area for cost savings.An initial waste review carried out using Worksheet 1 estimated that the total cost of wastewas £220 000/year and confirmed that reducing the cost of drum disposal to landfill was apriority. Analysis of this problem using a process flowsheet enabled waste amounts to bequantified and helped generate ideas for reducing waste.

Originally, the chemicals required for the process had been delivered in winchester bottlespacked in boxes. When production increased, the process was re-designed to permit the useof bulk 200 litre steel-lined chemical drums. These drums were disposed of to landfill at acost of £12 each.

Investing £3 000 in re-usable stainless steel drums enabled Applied Biosystems to reduce itsbulk raw material costs by £1.50/litre and to save £1 152/year in disposal costs. The totalsaving from this initiative was £44 000/year, giving a payback of only five weeks.

Using the worksheets in GG38 helped to ensure that efforts were concentrated on the areasthat would deliver the greatest financial benefits in the shortest time. Other potential savingstotalling £92 000/year have been identified using the structured approach described in GG38.

Other benefits resulting from using the systematic approach described in the Guide include:

■ improved environmental performance;

■ reduced waste disposal to landfill;

■ reduced manual handling leading to lower operator exposure to hazardous chemicals;

■ reduced need for quality control testing.

“Using the structured approach to identifying and eliminating waste described in GG38 hasproved a valuable means of significantly reducing costs and improving environmentalperformance.”

Sue GupwellEnvironmental, Health and Safety OfficerApplied Biosystems

11

section

4


SESSION 3 AN INTRODUCTION TO GG38 CUTTING COSTS BYREDUCING WASTE: A SELF-HELP GUIDE FORGROWING BUSINESSES


11 What to do with waste? 5 ■ Define waste as ‘anything that does notprovide added value for the customer’.

■ Outline the waste hierarchy adopted by theGovernment.

■ Point out that the cheapest option is not togenerate waste in the first place.

12 A structured approach to 5 ■ Emphasise that you cannot control somethingwaste minimisation that is not being measured, ie waste must

first be measured in terms of both quantityand cost.

■ The key objective is to make wasteminimisation a core business issue.

13 Cutting costs by reducing waste (1) 6 ■ Stress that no-one knows their businessbetter than the delegates do.

14 Cutting costs by reducing waste (2) 6 ■ Ask delegates to consider the benefits ofachieving financial savings equivalent to 1 - 2% of turnover.

15 Five steps for successful 3 ■ Outline the five steps described in Section 2 waste minimisation of GG38.

■ Emphasise the need to prove immediatebenefits to senior management so that thein-depth review can be implemented.

16 Opportunity checklist 5 ■ Shows - department headings from a pull-out from GG38.

■ Explain the context and purpose of theopportunity checklist.

Total time 30

Overhead 11 What to do with waste?

The waste hierarchy adopted by the Government as providing the best approach to waste is:

■ avoid;

■ reduce;

■ re-use, eg re-use of domestic milk bottles and coat hangers in retail outlets;

■ recycle, eg paper, glass bottles, aluminium cans and scrap metal;

■ dispose.

The term waste minimisation means various things to different people. It covers reducingboth the amount of waste produced and the hazards associated with waste.

Re-use requires no reprocessing, whereas recycling returns a finished product to the newmaterial stage and requires considerable reworking. The Government’s waste strategy forEngland and Wales (Making Waste Work) recognises composting and energy recovery asequivalent to recycling.

12

section

4


Overhead 12 A structured approach to waste minimisation

Good Practice Guide (GG38) Cutting Costs by Reducing Waste: A Self-help Guide forGrowing Businesses offers a structured approach that will help companies identify andquantify their waste. This approach to waste minimisation also provides a business contextfor environmental management.

Winning support

This is a key issue as most delegates will not have the seniority to implement any wasteminimisation programme without the support of a senior manager.

Funding must also be made available for undertaking small projects that can pay forthemselves in a few months. If the employees see their suggestions being implemented, theywill continue to support the initiative.

Waste minimisation drivers

When delegates return to their companies, they must demonstrate to senior managementthat waste minimisation provides an excellent opportunity for achieving cost savings. Theyshould also stress that a structured waste minimisation programme can:

■ help the company comply with environmental legislation;

■ enhance product quality;

■ improve the efficiency of the whole business operation.

It is important to emphasise here that waste minimisation should now become a corebusiness issue and not something of peripheral importance.

This structured approach to waste minimisation - through developing a flowsheet or map ofthe production process - identifies the potential for major cost savings. However, thesesavings are not usually achieved through technical solutions, but by people taking action. Theissues involved extend to the heart of the business, as the approach provides an opportunityfor changes to processes and working procedures that not only reduce waste but alsoproduce substantial cost savings.

Overhead 13 Cutting costs by reducing waste (1)

Overhead 14 Cutting costs by reducing waste (2)

Waste is not just discarded materials; it includes wasted time, energy, water and the excessiveuse of raw materials. Each process in every company produces waste and is therefore apotential target for waste minimisation and increased profits. Those delegates whosecompany provides services instead of making a product should be advised to think of theseservices as a product and the steps taken to supply them as the process.

The workshop is based on the fact that no-one knows their own business better thanthemselves. The role of business support organisations is to act as a facilitator to help eachcompany:

■ quantify its waste;

■ develop a prioritised action plan to achieve cost savings through the elimination orreduction of that waste.

Most companies can achieve savings of at least 1% of turnover through waste minimisation.

13

section

4


These savings are achievable - but to reap the benefits, resources must be made available,including:

■ people’s time;

■ a small financial ‘fighting fund’.

First each delegate needs to be convinced that waste minimisation is worthwhile for theirbusiness.

Ask them to work out how much 1% of their company’s turnover was last year. To get someidea of the true cost of waste, they should consider both the purchase and disposal costsof their major wastes. It shouldn’t take long - about half an hour - for them to decide thatwaste minimisation will be worthwhile.

Once delegates believe waste minimisation is worth pursuing, their next task is to convincetheir colleagues and make waste minimisation a core business issue.

Overhead 15 Five steps for successful waste minimisation

The structured approach described in GG38 is based on steps that have been designed toensure that maximum benefit is derived from the effort needed to implement a wasteminimisation programme. By the end of the workshop, delegates will have been providedwith a toolkit that will help them focus on key areas with the greatest potential for savings.

It is vital that some savings should be achieved as soon as possible. This will help to convincesenior management of the benefits of making time and resources available to achieve themajor savings offered by full implementation of a structured approach to waste minimisation.

The first three steps are discussed in more detail in Session 8.

Overhead 16 Opportunity checklist

This overhead is intended to act as a starting point for where to look for waste. The checklistis provided in the front pocket of GG38. It contains a series of typical wastes that occur atvarious stages of a company’s activities. Completing the opportunity checklist should enabledelegates to identify a wide range of wastes and make them more open to ideas for changingworking practices. Numerous possible wastes are suggested for each department/area.

This checklist usually forms the basis for ‘quick wins’, ie the achievement of immediatesavings that will ensure management’s commitment to the rest of the exercise.

The checklist can be used as a prompt in the syndicate sessions. Ask delegates to take thecopy from the pocket inside the front cover of their copy of GG38, look down the list andtick off those wastes they can identify as occurring within their business. Delegates can addany wastes their business generates that are not listed.

14

section

4


SESSION 4 AN INTRODUCTION TO THE PROCESS FLOWSHEET


17 Process inputs and outputs 5 ■ Explain the principle of identifying:

- all material and other inputs to theprocess;

- all the wastes from that process.

■ Do not consider quantities at this stage.

■ Emphasise the importance of taking thetime to complete this analysis.

18 The process flowsheet 5 ■ Emphasise the need to consider the businessoperations as a series of separate processes,each with its own suppliers and customers.These may be internal or external.

■ Ask each delegate to consider the value-adding process and the consequent real costof waste from each process.

19 Example process flowsheet 5 ■ A process flowsheet from a nailmanufacturer completed using GG38.

■ Encourage delegates to think about theinputs, outputs and wastes from eachprocess.

■ Explain that this flowsheet can then be usedto identify and quantify waste and its cost.

Total time 15

Overhead 17 Process inputs and outputs

The diagram highlights the range of possible process inputs and wastes. The opportunitychecklist can be used to help identify as many process inputs and wastes as possible for eachstep of the production process.

Overhead 18 The process flowsheet

Delegates should be asked to think of their business operation as a series of separate processes.Each internal process is considered to have its own individual inputs, outputs and wastes. Thoseareas that are outside a process area of direct control are either suppliers or customers.

Each step of a process adds value to a product and incurs a cost from the labour, materialsand utilities (gas, water, electricity, compressed air, etc) used in that process.

The true cost of waste includes:

■ the cost of wasted resources;

■ the cost of rejects at each stage in the process;

■ the value of lost sales from rejects.

The cost of rejects includes the value added to the material by the time it was rejected. Thecost of the rejects therefore increases as the material progresses towards the final product.

Inserting this information into the process flowsheet helps to identify and track waste. Thisprocess flowsheet, which is called a ‘waste tracking model’, forms the first key stage of thewaste minimisation methodology.

15

section

4


This waste tracking model is the core of the waste minimisation procedure; it provides themeans by which priority action areas can be identified. Effort must be targeted on areaswhere it will deliver the greatest cost savings.

Overhead 19 Example process flowsheet

Before starting the next session of syndicate workshops, it is useful to show delegates aprocess flowsheet developed for a fictitious company and encourage them to discuss possibleinputs, outputs and wastes. Delegates should then feel happy about using the flowsheetapproach to evaluate their company’s processes.

Process flowsheet for a nail manufacturer

The example on the overhead shows the main processes involved in the manufacture of nailsat a fictitious company.

Raw materials and storage. The major raw materials are steel rods and bars, which arenormally stored before use. You should point out that fork-lift trucks, labour, utilities andsome consumables are used in this step, but little value is added to the material.

Acid pickling. From storage, the metal is cleaned by acid pickling. This process uses acid,water, heat, protective equipment and labour. Delegates should be encouraged to identifythe wastes. This process adds some value to the product.

Extrusion. To reduce the metal bar to the correct diameter, it is pushed through a die.Delegates should again be encouraged to think about the inputs, outputs and wastes, egenergy, labour, machine maintenance, material loss at batch changeover and lubricant.

Nail making. The extruded wire is then cut and shaped. Again, prompt delegates to identifyinputs and wastes (similar to the previous stage). At this point, the majority of the value hasbeen added to the product. Any rejects and need for reworking will waste all this addedvalue. This is an important point because many people do not appreciate the true cost ofrework.

Packing, warehousing and dispatch. Devise your own description for these final stages.Remember to get delegates to think about the wastes such as potentially excessive use ofconsumables, packaging, utilities and labour.

SESSION 5 DEVELOPING A PROCESS FLOWSHEET -SYNDICATE WORKSHOPS


20 The process flowsheet 30 ■ Divide the delegates into syndicate (same as Overhead 18) groups for each pilot company.

■ Give the groups time to develop a processflowsheet for their pilot company.

21 Worksheet 2 Identifying waste 30 ■ Ask the groups to quantify and cost the using the waste tracking model waste from each process using Worksheet 2

from GG38.

■ Remind delegates of the definition of wasteas anything that does not provide addedvalue for the customer.

Total time 60

16

section

4


Overhead 20 The process flowsheet

This overhead is repeated to remind delegates of what they are trying to achieve during thisopen session.

Delegates should be split into approximately equal syndicate groups - one for each of thecompanies acting as pilots for the session. Representatives of these companies should havealready agreed to this - either in advance or during registration.

The syndicate leader should lead:

■ the development of a process flowsheet based on the pilot company’s businessoperations;

■ the syndicate report at the next session.

The syndicate leader can also record the flowsheet on a flip-chart, or ask the pilot companyrepresentative to do this.

In developing the process flowsheet, the syndicate leader will need to:

■ ask the representative of the pilot company to outline its business operations;

■ construct a flowsheet of operations (ideally five or six processes at most);

■ check with the company representative that the flowsheet is correct;

■ prompt other delegates for possible inputs to each process, eg labour and energy;

■ prompt delegates for possible wastes, eg rejects and energy;

■ confirm these suggested inputs/outputs with the company representative.

The final waste tracking model may need to be redrawn on a flip-chart ready to report to therest of the delegates in the next session.

Overhead 21 Worksheet 2 - Identifying waste using the wastetracking model

Waste minimisation requires measuring waste amounts and quantifying the true cost ofwaste. This is the second key stage of the waste minimisation methodology.

GG38 contains worksheets, which are intended to be photocopied and used as required.Copies of two of these worksheets are also bound into the back of this Guide. The use ofWorksheet 1 is explained in Session 8.

Worksheet 2 ‘Identifying Waste Using the Waste Tracking Model’ is designed to be used - inconjunction with the process flowsheet - to identify the true cost of waste for each separateprocess within a manufacturing or service unit. An example of a completed Worksheet 2 isshown in Fig 4 (p8) of GG38. A copy of Worksheet 2 is provided for your information at theback of this Guide, in the Appendices.

The groups should be asked to make their best estimate of all types of waste from eachprocess in their pilot companies. Make photocopies of Worksheet 2 and distribute these asrequired to delegates. Remember that each process requires a separate worksheet.

Delegates should be encouraged to think carefully about their pilot company and whatwastes will arise from each process. They should then attempt to put an approximatefinancial value on the waste from each process. This is to help identify wastes which may bea priority for reduction. Finally, delegates should add up the total cost to give the overallapproximate cost of waste to the pilot company.

17

section

4


SESSION 6 SYNDICATE REPORTING


22 The seven elements of waste 15 ■ Each syndicate leader should use a flip-chartto show the group’s waste tracking model.

■ Group members should be invited to enlargeon points of interest.

■ The total potential savings from wasteminimisation (1% of turnover) should becompared with the equivalent volume ofextra sales needed to produce this increasein profits.

■ Use the overhead as necessary to encouragediscussion.

Total time 15

Overhead 22 The seven elements of waste

This session provides an opportunity for delegates to appreciate the benefits of using thestructured approach to waste minimisation described in GG38.

You should note the key points made by each group on a flip-chart and draw lessons fromeach comment. The magnitude of waste costs should be emphasised and delegatesencouraged to identify other areas of waste and opportunities to reduce costs. You may findhelpful the list of waste reduction prompts in Appendix 1 of GG38.

It is important not to be too prescriptive. The main aim is to ensure that the delegates learnto consider their business as a series of processes and to identify their own wastes.

Each group should agree which of their processes offers the greatest potential for saving andease of implementation. This becomes their priority action area.

Do not rush the delegates at this point because they must be encouraged to use the processflowsheet approach to take a fresh look at their business and identify waste in all its forms.

If progress is slow, expand on the seven elements of waste shown in the overhead.

The seven wastes are:

■ overproduction - making too many - just in case;

■ waiting - time is an important element of competitiveness;

■ transporting - reorganise production to minimise materials handling;

■ inappropriate processing - ‘using a hammer to crack a nut’;

■ unnecessary inventory - ‘covers up’ quality problems;

■ unnecessary motions - ergonomics;

■ defects - a challenge to improve.

There is also one other key waste and that is people’s ideas.

18

section

4


SESSION 7 IDENTIFYING WASTE MINIMISATIONOPPORTUNITIES

Delegates have now had a taste of the power of using a process flowsheet to track waste.The last two sessions will equip them with useful tools to get started when they go back totheir own sites.


23 ‘Cause and effect’ diagram 3 ■ Useful when seeking the root causes of aproblem.

■ Emphasise the need to ask why wasteoccurs.

■ Use the diagram as a basis for generatingideas in a brainstorming session.

24 Generating ideas 7 ■ Use the opportunity checklist to identifyways of reducing costs quickly.

■ Start with agreed priority areas.

Total time 10

Overhead 23 ‘Cause and effect’ diagram

Once the priority areas for action have been identified, a ‘cause and effect’ diagram can beused to identify opportunities for eliminating waste within each process. For each ‘effect,’ ietoo much process waste, there are likely to be several causes.

In manufacturing industry, the key causes are:

■ people;

■ methods;

■ materials;

■ machinery.

Why is the waste generated? Remember to look for ways to cure the cause, or causes, ofthe problem and not just the symptoms.

One practical method of identifying the reasons for waste is to ‘brainstorm’ ideas and thenrank them to determine root causes.

Overhead 24 Generating ideas

Once the causes of waste have been identified, it is important to involve everyone ingenerating solutions and especially people on the ‘shop floor’.

‘Cause and effect’ diagrams are a standard tool for quality improvement. The best recipe forsuccess is to:

■ ask the people who work on the process to suggest reasons (without recrimination) forthe problem;

■ list their suggestions against each cause;

■ involve everyone in the development of solutions;

■ implement no-cost measures as soon as possible.

19

section

4


When considering ways to reduce waste and utility consumption, start with the ‘bigger’issues and then work down to smaller problems.

■ Challenge existing practices. Ask why things are done in a particular way.

■ Draw up a shortlist of options for improving performance, in conjunction with the keystaff in each department/unit. Select those options that emphasise cost saving andefficiency.

■ Assess possible savings.

■ Consider the practicability and the timescale for making the necessary changes.

■ Where possible, allocate responsibility to staff in each department/unit for assessingand recommending opportunities. This encourages ‘ownership’ of the solution.

Appendix 1 of GG38 contains a list of waste reduction prompts, while further ideas are givenin ET30 Finding Hidden Profit - 200 Tips for Reducing Waste. ET30 is available free of chargethrough the Environmental Helpline on 0800 585794.

SESSION 8 DEVELOPING AN ACTION PLAN


25 The action plan 15 ■ Focus on an area for action that relates tothe company’s strategic goals.

■ Develop an enthusiasm for wasteminimisation in other people.

■ Implement some initial waste reductionmeasures as soon as possible.

■ Measure results.

■ Report to senior management.

26 The three steps for making 15 ■ Focus on a small number of priority areas.quick savings ■ Implement changes/new procedures as soon

as possible.

■ Measure savings and report them.

27 When you get back... 5 ■ Estimate the true cost of waste in yourbusiness.

■ Show your process flowsheet to your linemanager.

■ Canvass support for a pilot wasteminimisation programme.

Total time 35

Overhead 25 The action plan

Early success is essential to prove that waste minimisation is worth the effort. Drawing up anaction plan will help to achieve this. Since almost everything in business is measured in costterms, it is important to take detailed measurements and translate them into costs.

Once the process flowsheet has been developed and a key area for priority action identified,the next stage is to hold a meeting with the people concerned. Successful wasteminimisation requires a team approach, where people are invited to contribute their ideas.The key area chosen for action must be consistent with the company’s strategic goals.

20

section

4


It is important that ideas for waste reduction are evaluated and implemented as soon aspossible. The results will provide evidence to convince senior management of the benefits ofwaste minimisation and allow the workforce to see that their ideas are valued.

As part of their action plan, delegates should ensure that simple measuring systems are inplace. These should be both cost-effective and appropriate to the process concerned. Themeasurements needed to check on progress should be made regularly and any problemstackled immediately. It is also important to establish a baseline for existing procedures andmaterial/energy use to demonstrate the effectiveness of waste reduction measures.

Savings should be measured and reported, in an appropriate format, to both managementand operators. Communication is a vital element in creating a ‘waste minimisation culture’within the business. It is also important to give credit to the team.

The cycle can then be repeated to identify the next problem area and create a programme ofcontinuous improvement.

Overhead 26 The three steps for quick savings

Most companies start by undertaking a pilot waste minimisation programme. It is importantthat this pilot programme concentrates on the main priority areas for action in order toachieve immediate savings or ‘fast starts’.

It is vital at this early stage to choose an area where people are co-operative and open to newideas. It is also important to choose an area where there is no need for large capitalinvestment - otherwise this will send the wrong message to management.

Packaging and logistics are often profitable areas for action. For example, most companiesuse wooden pallets to transport goods. An audit of damaged or unreturned pallets canprovide a good starting point from which to identify upstream and downstream waste.

Once several quick and inexpensive cost-saving measures have been implemented, tangibleevidence will be provided of the real benefits to the company of following a structuredapproach to waste minimisation.

STEP 1 Gathering information

The first step is to obtain information about the site and its activities. Advise delegates tostart by walking round their site, or perhaps just one or two areas, and making a note of anywastes. It is important to write down the type, quantity and direct costs to the company ofeach waste, for example, using Worksheet 1 ‘Opportunities for Saving Money’ from GG38.Fig 1 of GG38 (p.4) shows an example of a completed Worksheet 1. A blank copy of this worksheet is provided for your information in Appendix 9.

Major sources of waste - such as packaging, lubricants, energy, water and rework - can beidentified by filling in Worksheet 1.

Warn delegates not be put off if information is limited. Where quantity/cost details are notavailable, ‘best’ estimates or simple measurements should be used to provide approximateinformation. Alternatively, delegates could make a note to come back to the problem later.

Collecting information about waste amounts and costs is necessary to convince seniormanagement that waste minimisation offers a major opportunity to improve businessperformance.

21

section

4


STEP 2 Identifying priorities

The next task is to identify the main priority areas for action in order to make a ‘fast start’ onthe more obvious waste minimisation opportunities. It is important to focus on a smallnumber of major areas where:

■ the largest financial savings can be made; and

■ there are practical ideas for making changes.

The major sources of waste identified using Worksheet 1 should be examined first. Thesemay be:

■ the largest quantities going to waste, eg effluents or solid waste to landfill; or

■ those with the highest net costs, eg disposal costs, energy consumption, raw materialwastage, off-spec products or packaging.

Talking to the people involved in the activity that is producing the waste will help tounderstand why the waste is being produced. It may be because:

■ no-one had realised there was a problem;

■ an established practice may no longer be relevant.

A quality improvement team or motivated individuals should be asked to come up with ideasfor preventing major wastes being generated. Simply asking staff for ideas can often be veryuseful. For some teams, informal ‘brainstorming’ sessions are the best way of generatingideas. If possible, the savings achievable from the best ideas should be estimated.

STEP 3 Making the first savings

To make their first savings, delegates will need to:

■ Prepare an action plan.

■ Agree who is going to do what and by when. The ‘cause and effect’ method describedin the previous session and in Section 3 of GG38 will help to determine what the keyactions are and whose job it is to carry them out.

■ Involve ‘front line’ staff, ie those controlling operations that produce waste. Processoperators should be consulted about the definition of aims and priorities and theallocation of responsibility. This involvement will help to achieve success.

Measured material or time savings should be translated into cost savings and used toconvince management of the economic benefits of implementing a full-scale wasteminimisation programme.

Overhead 27 When you get back...

So as not to lose the momentum gained at the workshop and the benefits to their company,delegates should do three things as soon as they return to work, ie:

■ estimate the true cost of waste to their business;

■ show their line manager their process flowsheet;

■ seek support from other employees for a pilot waste minimisation programme.

Remind delegates to emphasise to management that the time spent on an initial review willlead to cost savings of at least 1% of turnover.

Finally, suggest that delegates read GG38 soon to reinforce what they have learnt at theworkshop.

22

section

4


The final minutes of the workshop give you the opportunity to:

■ stress that companies are not on their own, by outlining the support available fromyour organisation and others such as the Environmental Technology Best PracticeProgramme;

■ check that delegates have the contact details for your organisation, the EnvironmentalHelpline and any other local organisations that may provide support;

■ remind delegates that they can phone the Environmental Helpline on 0800 585794 ifthey need advice on environmental information;

■ mention the other free publications available from the Environmental Technology BestPractice Programme through the Environmental Helpline on 0800 585794;

■ draw delegates’ attention to the free counselling service available from theEnvironmental Helpline (details in leaflet ET10);

■ ask for questions/comments;

■ ask delegates to complete the exit questionnaire;

■ if appropriate, thank the representative from a local company for coming to give aCase Study, and any other speakers;

■ thank the delegates for coming and for their participation in the opensessions.

23

C L O S I N G R E M A R K S5

section

5


This checklist is vital not only for the success of the workshop, but also for the companysupport structure which will be necessary to produce results and develop business for yourorganisation.

■■ Plan the invitation and venue carefully. Appendix 4 contains a sample invitation letter,while Appendix 2 gives a checklist of items needed on the day.

■■ Invite a minimum of 400 people if you want 20 delegates to come. You may need toinvite considerably more people if this is a new subject for the target audience.

■■ Take sufficient time to become familiar with your material.

■■ Consider combining your skills with those of other organisations.

■■ Request Good Practice Guide (GG38) Cutting Costs by Reducing Waste: A Self-helpGuide for Growing Businesses in plenty of time using the form in Appendix 6. Allowfour weeks for delivery.

■■ Make photocopies of Worksheet 2 from GG38 for use in the syndicate workshopsession.

■■ Compile a list of the services available for follow-up support.

■■ Make up sufficient registration packs and prepare other signposting material.

■■ Invite a representative of a local company to present a Case Study or obtain details oflocal Case Studies. Both will help to make the workshop more relevant to theaudience, though the former is much better.

■■ Arrange for tea/coffee to be provided at the appropriate times.

■■ Remember it’s your workshop, but you can ask the Environmental Technology Best Practice Programme for advice and support. The Environmental Helpline on 0800 585794 will be able to put you in touch with the right person.

After the workshop:

■■ Send in completed exit questionnaires (see Appendix 5) to the Environmental TechnologyBest Practice Programme at: ETSU, 156 Harwell, Didcot, Oxfordshire OX11 0RA.

■■ Use the workshop delegates as the basis for a local network of companies interestedin waste minimisation.

24 GG106 published by the Environmental Technology Best Practice Programme. Helpline: 0800 585794

C O - O R D I N AT O R ’ S C H E C K L I S TAppendix 1

appx

A1

The items needed for the smooth running of the workshop include:

■■ overhead projector;

■■ screen;

■■ one flip-chart and one set of coloured felt pens for each syndicate group;

■■ pads of A4 paper;

■■ pens;

■■ attendance list;

■■ name badges for delegates, speakers, syndicate leader(s) and co-ordinator;

■■ photocopies of Worksheet 2 from GG38;

■■ the appropriate number of copies of GG38 Cutting Costs by Reducing Waste: A Self-help Guide for Growing Businesses;

■■ copies of the agenda, delegates list and exit questionnaire for each delegate;

■■ information about Business Links and other local services;

■■ publicity material about the Environmental Helpline;

■■ examples of Environmental Technology Best Practice Programme Good Practice CaseStudies (available through the Environmental Helpline on 0800 585794);

■■ Environmental Technology Best Practice Programme publications list;

■■ examples of other Programme publications, eg ClubNews.

And finally, don’t forget your copy of this Guide and the set of overheadtransparencies.

25GG106 published by the Environmental Technology Best Practice Programme. Helpline: 0800 585794

W O R K S H O P C H E C K L I S TAppendix 2

appx

A2

CUTTING COSTS BY REDUCING WASTE

LOCAL ORGANISATION

Venue:..............................................................

Date:................................................................

Time:................................................................

AGENDA

8.45 - 9.15 Coffee and Registration

9.15 Session 1 Introduction

9.25 Session 2 What is waste minimisation?

■ Case Study

9.55 Session 3 An introduction to Good Practice Guide (GG38) CuttingCosts by Reducing Waste: A Self-help Guide forGrowing Businesses

10.25 Session 4 An introduction to the process flowsheet

10.40 Coffee

10.55 Session 5 Developing a process flowsheet - syndicate groups

11.55 Session 6 Syndicate reporting

12.10 Session 7 Identifying waste minimisation opportunities

12.20 Session 8 Developing an action plan

■ Getting started

12.55 Closing remarks: Where to go for advice andsupport


W O R K S H O P A G E N D AAppendix 3

appx

A3

Organisation logo Address

Tel:Fax:

Date

Dear Sir/Madam

Cutting Costs by Reducing Waste - Free Workshop

Date

You are invited to a free half-day workshop which will guide you towards cutting your costsby reducing your wastes. It has been shown that companies can reduce their costs by 1% ofturnover by using the measures covered by this workshop.

The workshop is being organised by your organisation, with support from the EnvironmentalTechnology Best Practice Programme. It will be held at venue on date at time. This workshopis the first of its type in place and is offered free of charge to companies that register for theevent. Then

Either:

As part of the workshop, a representative from a local company will present a Case Studyoutlining how waste minimisation has been integrated into its activities. You will also be toldhow your organisation and the Environmental Technology Best Practice Programme can helpyou reduce your business costs.

Or:

As part of the workshop, a Case Study will be presented to illustrate the benefits ofintegrating waste minimisation into your core business activities. You will also be told howyour organisation and the Environmental Technology Best Practice Programme can help youreduce your business costs.

Followed by

A Self-help guide for growing businesses developed by the Programme will form the basis ofthe workshop sessions.

If you would like to attend the workshop, please complete the attached reply slip.(Customised form from your organisation)

Yours faithfully

NamePositionYour organisation


S A M P L E I N V I TAT I O N L E T T E RAppendix 4

appx

A4

ORGANISATION NAME

CUTTING COSTS BY REDUCING WASTE

NAME: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

COMPANY: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

POSITION:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ADDRESS:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TEL NO: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NO OF EMPLOYEES: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Excellent Good Fair Poor

Usefulness ■■ ■■ ■■ ■■Venue ■■ ■■ ■■ ■■

Too short About right Too long

Duration ■■ ■■ ■■Are there any other topics you would have liked us to cover in this workshop?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Waste Minimisation Network

Yes, my company is interested in becoming a member of the network. ■■Please contact me with the joining details.

My company is interested in receiving more information about the network. ■■My company is not interested in becoming a member of this network, but ■■would be interested in other topics such as:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Please complete and hand in before leaving the event. Thank you.


E X I T Q U E S T I O N N A I R EAppendix 5

appx

A5

WORKSHOP: CUTTING COSTS BY REDUCING WASTE

TO: Environmental Technology Best Practice Programme

Tel: 0800 585794

Fax: 01235 463804

FROM: Name: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Position:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Organisation: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tel: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fax: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WORKSHOP Date: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DETAILS Venue: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expected numbers: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who is your target audience?:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

No of copies of GG38 required: ■■No of copies of Helpline flyer ET10 required: ■■Details of other organisations associated with the running of the workshop:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


O R D E R F O R M F O R G G 3 8 A N D H E L P L I N E P U B L I C I T Y

Appendix 6

appx

A6

No Title

A8.1 Waste minimisation for Business and environment

A8.2 Workshop objectives

A8.3 Agenda

A8.4 Why waste minimisation?

A8.5 Obvious waste costs

A8.6 Hidden waste costs

A8.7 How much does waste cost?

A8.8 Stages in waste minimisation

A8.9 Take a fresh look at your business

A8.10 Case Study at Applied Biosystems (not used if Case Study from a local company ispresented)

A8.11 What to do with waste?

A8.12 A structured approach to waste minimisation

A8.13 Cutting costs by reducing waste (1)

A8.14 Cutting costs by reducing waste (2)

A8.15 Five steps for successful waste minimisation

A8.16 Opportunity checklist

A8.17 Process inputs and outputs

A8.18 The process flowsheet

A8.19 Example process flowsheet

A8.20 The process flowsheet (repeats Overhead 18)

A8.21 Worksheet 2 - Identifying waste using the waste tracking model

A8.22 The seven elements of waste

A8.23 ‘Cause and effect’ diagram

A8.24 Generating ideas

A8.25 The action plan

A8.26 The three steps for quick savings

A8.27 When you get back...


L I S T O F O V E R H E A D SAppendix 7

appx

A7

This Appendix contains a complete set of templates for producing overhead projectortransparencies. As with other material in this Guide, they can be photocopied as required.


O V E R H E A D T E M P L AT E SAppendix 8

appx

A8

A8.1 OVERHEAD 1


WA

STE

M

INIM

ISA

TIO

Nfo

r B

usi

ness

an

d t

he

en

vir

on

men

t

A8.2 O

VER

HEA

D 2

33G

G106 published by the Environm

ental Technology Best Practice Programm

e. Helpline: 0800 585794

WORKSHOP OBJECTIVES

■ To undertake a structured review of waste amountsand costs by developing a process flowsheet

■ To use Good Practice Guide GG38 as a toolkit toreduce costs and improve environmentalperformance

Remember: waste is anything that doesn’t provide added value to your product.

A8.3 O

VER

HEA

D 3

34G



e. Helpline: 0800 585794

AGENDA8.45 Coffee and Registration

9.15 Session 1 Introduction

9.25 Session 2 What is wasteminimisation?

■ Case Study

9.55 Session 3 An introduction toGood Practice Guide(GG38) Cutting Costs byReducing Waste: A Self-help Guide for GrowingBusinesses

10.25 Session 4 An introduction to theprocess flowsheet

10.40 Coffee

10.55 Session 5 Developing a processflowsheet - syndicategroups

11.55 Session 6 Syndicate reporting

12.10 Session 7 Identifying wasteminimisationopportunities

12.20 Session 8 Developing an actionplan

■ Getting started

12.55 Closing remarks: Whereto go for advice andsupport

A8.4 OVERHEAD 4


WH

Y W

ASTE

MIN

IMIS

ATI

ON

?

Bu

sin

ess

pre

ssu

res

for

envi

ron

men

tal i

mp

rove

men

t in

clu

de:

■R

edu

cin

g c

ost

s

■Le

gis

lati

on

■C

ust

om

er p

ress

ure

A8.5 OVERHEAD 5


OB

VIO

US W

ASTE

CO

STS

■D

irec

tly

char

ged

, eg

- sk

ip r

emo

val

- ef

flu

ent

char

ges

■Ea

sily

iden

tifi

ed

A8.6 O

VER

HEA

D 6

37G



e. Helpline: 0800 585794

HIDDEN WASTE COSTS

■ Cost of things you throw away

■ For example:- cost of raw materials in skip- cost of labour in scrapped product- cost of consumables in all products- cost of wasted energy- lost sales value

A8.7 O

VER

HEA

D 7

38G



e. Helpline: 0800 585794

HOW MUCH DOES WASTE COST?

■ Hidden costs are much higher thanobvious costs

■ Waste costs about 4% of turnover

■ For example, Leicestershire WasteMinimisation Initiative involving tencompanies:- estimated cost of waste £500 000/year- audited cost over £13 million/year

■ Can turn 1% of costs into profit

A8.8 O

VER

HEA

D 8

39G



e. Helpline: 0800 585794

STAGES IN WASTEMINIMISATION

Feedback

Reviewand audit

Commitment

Identifyoptions

Establishwaste costs

Implementand manage

Assess andrank options

Assessfeasibility

A8.9 OVERHEAD 9


TAK

E A

FR

ESH

LO

OK

A

T Y

OU

R B

USIN

ESS

Ask

:

■W

hy

do

we

do

th

ing

s th

is w

ay?

■W

hy

do

we

do

th

is a

t al

l?

A8.10 O

VER

HEA

D 10

41G



e. Helpline: 0800 585794

CASE STUDY AT APPLIED BIOSYSTEMS

Using GG38, this Company identified:

■ Waste costs of £220000/year

■ Savings of £44000/year in the firstyear from re-usable drums- payback of five weeks

■ Potential savings of £92000/year

■ Reduced disposal to landfill

A8.11 O

VER

HEA

D 11

42G



e. Helpline: 0800 585794

WHAT TO DO WITH WASTE?Avoid it Best/cheapestReduce itRe-use itRecycle itDispose of it Worst/most expensive

Waste is anything that does not provideadded value for the customer.

A8.12 OVERHEAD 12


A S

TRU

CTU

RED

APPR

OA

CH

TO

WA

STE

MIN

IMIS

ATI

ON

Focu

s o

nke

y is

sues

Pilo

tac

tio

nM

easu

resu

cces

s

Ro

llo

ut

Pro

cess

flo

wsh

eet

Wo

rksh

eets

Ass

um

pti

on

s

A8.13 O

VER

HEA

D 13

44G



e. Helpline: 0800 585794

CUTTING COSTS BYREDUCING WASTE (1)

■ The scale of the potential savings makeswaste minimisation a core business issue

■ No-one knows the business better thanthe people who work in it

■ Listen to people’s ideas

■ Take immediate action to implementgood ideas

A8.14 O

VER

HEA

D 14

CU

TTING

CO

STS BY

45G



e. Helpline: 0800 585794

CUTTING COSTS BYREDUCING WASTE (2)

■ Be prepared to give time and resourcesto this process

■ Remember that waste costs include:- raw material costs- processing costs- disposal costs

■ Now convince your management

A8.15 O

VER

HEA

D 15

46G



e. Helpline: 0800 585794

FIVE STEPS FOR SUCCESSFULWASTE MINIMISATION

1 Gather available information

2 Identify opportunities and establish priorities

3 Make the first savings

4 Measure savings

5 Achieve more savings

Remember to report success to management

A8.16 OVERHEAD 16


OPPO

RTU

NIT

Y C

HEC

KLI

ST

■In

com

ing

mat

eria

ls

■St

ora

ge

- ra

w m

ater

ials

- p

arts

- fi

nal

pro

du

cts

■Pr

od

uct

ion

■Su

pp

ort

ser

vice

s

■En

erg

y

■W

ater

■O

ther

A8.17 O

VER

HEA

D 17

48G



e. Helpline: 0800 585794

PROCESS INPUTS AND OUTPUTSSupplier

(raw materials or products)

Labour

Lubricants

Heating andlighting

Utilities

Customer

Process

Wastes(examples only)

Inputs(examples only)

Rejected material

Dirty oil

Wasted time

Packaging

Heating andutilities

A8.18 O

VER

HEA

D 18

49G



e. Helpline: 0800 585794

THE PROCESS FLOWSHEETSupplier

Total cost of waste

Customer

Waste

Waste

Waste

Otherinputs

Valueadded £

Otherinputs

Otherinputs

Output

Major input

£

£

£

£

Process No 1

Process No 2

Process No 3

A8.19 OVERHEAD 19


EXA

MPL

E PR

OC

ESS

FLO

WSH

EET

Go

od

s in

war

ds

- st

eel r

od

s an

d b

ars

Sto

rag

e

Extr

usi

on

Nai

l mak

ing

Pack

ing

Aci

d p

ickl

ing

War

eho

usi

ng

Dis

pat

ch

A8.20 O

VER

HEA

D 20

51G



e. Helpline: 0800 585794

THE PROCESS FLOWSHEETSupplier

Total cost of waste

Customer

Waste

Waste

Waste

Otherinputs

Valueadded £

Otherinputs

Otherinputs

Output

Major input

£

£

£

£

Process No 1

Process No 2

Process No 3

A8.21 OVERHEAD 21


WORKSHEET 2

IDENTIFYING WASTE USINGTHE WASTE TRACKING MODEL

NAME: DATE: SHEET: of

PROCESS DESCRIPTION:

Supplier/Input:

Resource/ Quantity Wasted Monthly CostMaterial/Utility (including purchase

and disposal)

TOTAL

Customer:(or next process)

A8.22 O

VER

HEA

D 22

53G



e. Helpline: 0800 585794

THE SEVEN ELEMENTS OF WASTE

■ Overproduction

■ Waiting

■ Transporting

■ Inappropriate processing

■ Unnecessary inventory

■ Unnecessary motions

■ Defects - plus one - the waste of people’s ideas

A8.23 O

VER

HEA

D 23

54G



e. Helpline: 0800 585794

‘CAUSE AND EFFECT’ DIAGRAM

People Methods

MachineryMaterials

Changeover times too slow

Poortraining

Lack ofclearinstructions

Suppliedoutside spec

Waste ofmaterialduring set-upprocess

Runningtoo slowly

Breakdowns

Too muchprocess waste

EFFECT

CAUSES

A8.24 O

VER

HEA

D 24

55G



e. Helpline: 0800 585794

GENERATING IDEAS

■ Challenge existing practices

■ Shortlist options

■ Assess possible savings

■ Consider practicability and timescale

■ Allocate responsibilities

A8.25 O

VER

HEA

D 25

56G



e. Helpline: 0800 585794

THE ACTION PLANObtain the

support andcommitment of

senior management

Develop aprocess flowsheet

Undertake detailedmeasurements

Discuss ideas with the'team' concerned

Develop newworking procedures

Identify a key areafor waste reduction

Measure results

Report

Link to the company'sstrategic goals

A8.26 OVERHEAD 26


THE T

HR

EE S

TEPS

FOR

QU

ICK

SA

VIN

GS

1G

ath

erin

g in

form

atio

n

2Id

enti

fyin

g p

rio

riti

es

3M

akin

g t

he

firs

t sa

vin

gs

A8.27 O

VER

HEA

D 27

58G



e. Helpline: 0800 585794

WHEN YOU GET BACK...

■ Get management commitment for aninitial review

■ Draw up a process flowsheet

■ Estimate the true cost of waste

■ Decide priorities

■ Carry out some ‘fast starts’


T W O W O R K S H E E T S F R O M G G 3 8Appendix 9

appx

A9

WORKSHEET 1OPPORTUNITIES FOR SAVING MONEY:

MAJOR SOURCES OF WASTE


Process or Type of waste Estimated amount Estimated cost Current wasteactivity of waste produced including reduction

week/month/year* disposal, raw activitiesmaterial (if any)purchase costs,utilities, addedvalue week/month/year*

NET ANNUAL COST

*Indicate timescale


WORKSHEET 2IDENTIFYING WASTE USING

THE WASTE TRACKING MODEL


PROCESS DESCRIPTION:

Supplier/Input:

Resource/ Quantity Wasted Monthly Cost

Material/Utility (including

(from Process purchase and

flowsheet) disposal)

TOTAL

Customer:

(or next process)appx

A9

Date post:	29-Sep-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

CUTTING COSTS BY REDUCING WASTE - p2infohouse.org · (GG38) Cutting Costs by Reducing Waste: A...

Documents