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Resource efficiency: cut costs in plastics processing

Learn to cut costs and boost profits by directing resource efficiency in plastics manufacturing. Uncover hidden waste costs and legal requirements while enhancing business reputation. Take steps for sustainable resource management.

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Resource efficiency: cut costs in plastics processing

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  1. Resource efficiency: cut costs in plastics processing Workbook 1: directing resource efficiency

  2. Business and the environment • Resource efficiency is the skill that will decide if you survive or fail • Resource efficiency is the management issue • Resource efficiency is a basic philosophy and approach • Generate profit and not waste Directing resource efficiency 1

  3. Workshop objectives • To show directors that resource efficiency is good business • To show directors that resource efficiency is good for the business • To show the way forward for management Waste is anything that does not add value to the product Directing resource efficiency 2

  4. Why resource efficiency? Efficient use of resources is the key to future survival in manufacturing Directing resource efficiency 3

  5. Not: stop waste!But: find waste! The greatest waste is the waste we don’t see Directing resource efficiency 4

  6. Business pressures for resource efficiency • Waste costs real money • The true cost of waste is hidden • Resource efficiency is good business • Legislation and the legal consequences • Our reputation and customer pressure Directing resource efficiency 5

  7. Waste costs real money • Waste costs UK industry around £15 billion/year • Waste costs are approximately 4.5% of turnover • Costs are usually about 10 times the first estimate • Waste costs can be reduced by 25% - equivalentto 1% of turnover • Savings go directly to profits • Hidden costs are much higher than obvious costs Directing resource efficiency 6

  8. The true cost of waste is hidden Obvious waste costs: • Skip removal • Effluent charges Hidden waste costs: • Cost of raw materials in the skip • Cost of labour, consumables and utilities in scrapped product • Lost sales value and production time Directing resource efficiency 7

  9. Resource efficiency is good business • Savings do not require high capital expenditure • Companies of all sizes can benefit • High return on investment and short payback period • Self-funding after the first successful project • Success can be shared between groups of companies Directing resource efficiency 8

  10. Legal requirements • Climate Change Levy • Landfill tax • Packaging waste regulations • Materials disposal regulations + more to come … Waste minimisation reduces exposureto new regulations Directing resource efficiency 9

  11. Our reputation • People want to work for ‘clean’ companies • Waste minimisation reduces our environmental impact • Customers are demanding more from suppliers • Waste minimisation shows that we are improving our environmental performance • Waste minimisation demonstrates efficient use of loans and investments Directing resource efficiency 10

  12. Key steps Step 1: recognising the true cost of waste andmaking a commitment to action Step 2: collecting better resource data Step 3: analysing resource data Step 4: preparing an action plan Step 5: implementing the plan Step 6: monitoring, reviewing and providing feedback A systematic approach tailored to company priorities Directing resource efficiency 11

  13. Words for waste • Conveyor loss, customer returns … • Defects, dirty solvent, dregs, dross, dust ... • Obsolete stock, offcuts, out-of-spec, overfill … • Reel ends, regrind, rejects, rework, rubbish … • Scrap, second quality, sprues, sweepings … • Usage allowance, usage variance ... • Workaway, yield loss ... + more that are being invented all the time Directing resource efficiency 12

  14. Opportunity checklist • Look at: • Incoming materials • Stores (raw materials, parts, final products) • Production • Support services • Energy • Water • Other Directing resource efficiency 13

  15. Potential opportunities Directing resource efficiency 14

  16. Managing costs • The scale of the potential savings makes resource efficiency a core business issue • The returns are worth the effort • Train staff to reduce costs through resource efficiency and listen to their ideas • No-one knows the business better than the people who work in it • Encourage immediate action to implement good ideas Directing resource efficiency 15

  17. Providing direction • Establish board-level commitment for resource efficiency • Appoint a resource efficiency champion • Seek regular ‘one line’ reports on: • the cost of waste collection/disposal • the total cost of waste • Support initiatives and praise success Directing resource efficiency 16

  18. Resource efficiency is good business Resource efficiency is NOT: • A quick fix • A technology solution • A destination Resource efficiency IS: • An on-going process • A management attitude   • A journey Directing resource efficiency 17

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