Operational Performance Assessment (OPA)

Program Overview

This document is designed to give prospective clients WIH Resource Group

a high level overview of the OPA’s attributes. Environmental & Logistical Solutions™
Solutions™
 About WIH Resource Group
WIH Resource Group provides clients with fully integrated solutions to waste
management, transportation and logistical challenges. We offer creative solutions to
solve complex waste management business and operational, transportation/logistical
matters, recycling, composting and disposal challenges for our clients.

9 Customer Oriented – We focus on each client’s specific needs before

developing a solution.
9 Innovative – We solve client challenges using innovate and cost effective
solutions.
9 Experienced – We have over sixty years combined experience in solid waste
and logistical management; including sustainable development, recycling &
diversion, Operational Performance Benchmarking and Assessments (OPAs),
rate studies and solid waste operational management.
9 Flexible – We adapt easily to changing client needs and environment.
9 Solutions Driven – We are unique among our competitors in that we apply
our “real world” waste management experience to provide our clients with
integrated optimal solutions to address their specific needs.
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WIH Team’s "Real World" Industry Experience

Waste Management Private Sector Industry Experience:

Forty years of combined management and project experience in solid waste &
bio-solids management, transportation and logistics. Several members of our
team held senior-level key management positions with some of the largest
waste management providers in North America.

Our experience includes the oversight of:

Operations, Maintenance, Finance, Human Resources, Business Development,
Sales, Safety and Environmental Compliance.

Prior Management Experience in the Following Areas:

A variety of collection operations, Sub-title D and hazardous and Class II
landfills, transfer stations, intermodal facilities, recycling centers, buyback
centers, material recovery facilities, fleet management, WastebyRail, bulk
waste barging, collection vehicle routing, solid waste and biosolids rate
studies/analysis, vehicle and container maintenance operations, call centers
and payment processing operations.

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 The OPA Process – What is it?
¾ The Operational Performance Assessment (OPA) Process is a
very refined process that provides a clear method for evaluating
and assessing current solid waste management & recycling
operations programs, in collections, material processing and post
collections.

¾ The OPA identifies key areas of opportunity and the process also
allows for strong interaction and input from our clients’ key program
staff.

¾ The OPA process identifies operational strengths and weaknesses

and facilitates the development of a plan for maximizing process
efficiencies.

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 The OPA Process – Why Does It Work?

9Proven Process - WIH Resource Group uses a proven proprietary process,

known as our Operational Performance Assessment (OPA), to evaluate the
efficiencies and productivity of our client’s solid waste & recycling operations.
In addition, we identify other key areas for reducing costs and increasing
revenues.

9Tailored Solutions/Outcomes - As we all know, breaking old habits and

changing some parts of a company’s culture can be difficult. Therefore, we
do not use a “cookie-cutter” approach and work together with our Clients and
their key stakeholders (staff, drivers, operators and mechanics) to provide
specifically tailored solutions in the areas that are of greatest concern and that
we jointly identify as areas of greatest opportunity for increasing profits,
improving return on investment and cutting costs.

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 The OPA Process – What Does It Involve?

The
Operational Performance Assessment
Umbrella

Fleet & Maintenance

Safety

Human Resources
Pricing

Customer Service

Sales
Productivity
Operational

People/
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The OPA Process – All Disciplines Working Together
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Environmental & Logistical Solutions™
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 The OPA Process – What Kind of
Results Does It Produce?

Overriding Factors - Several factors determine the kinds of results that can
come from the OPA Process. Some overriding factors that can be critical in
impacting the cost savings and revenue enhancements are largely dependent on
the client’s specific operations, contracts, franchise permits, labor agreements,
ability to increase customer rates, improve operational productivity and increase
staff accountability through empowerment, as well as a influence driver,
mechanic and operator behaviors.

Past Results - Our past results have yielded between 5 and 25% improvements
in the areas of productivity, cost reductions and profitability, depending on the
line of business, senior management support and the ability to positively
influence staff and driver behavior.

Improved Margins - The OPA process brings tremendous benefits to our

Client’s solid waste operations and management team.

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 The OPA Process - How Does It Work?
The OPA was developed and has been refined to assist our
clients in the following core areas:

‰ Process Improvement - Through the OPA process, WIH Resource Group staff evaluates our
client's current processes, identifying areas of opportunity for improvement, and developing
management programs that foster an increased environment of accountability among
management and operators.
‰ Benchmarking – The OPA process benchmarks current operational metrics and establishes
attainable goals for improving the metrics and processes over current productivity & methods.
‰ Improve ROI On Assets - Assist individual Clients to improve the quality of revenue per unit.
‰ Goal Setting - Work along side staff in establishing and developing protocols to achieve the
newly established (mutually agreed upon) goals.
‰ Establishing SOPs - Assist our Clients in implementing permanent tools, processes,
standard operating procedures (SOPs), and best practices that will improve productivity.
‰ Productivity Planning - Assist our Clients in developing productivity improvement plans that
will roll-up to exceed their current productivity plans and targets.
‰ Staff Empowerment - Assist our Clients in developing specific plans that empower their Front
Line Managers to influence driver behavior, improve work culture, drive productivity
improvements through improved communications and provide accountability.
‰ Customer Revenue Analysis - To improve the quality of our clients’ revenue on a customer
by customer level to obtain improvement to Operating Margin (Yield), and/or return on capital.
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The OPA Process – Data Collection & Analysis

The initial phase, Data Collection, is critical. It is imperative that WIH have
access to good data from our clients so that we can properly perform the
OPA and develop the recommendations. The Data Collection phase of the
project is divided into five areas of focus. They are as follows:

™ Site – Items specific to the site that do not fall under one of the other areas

™ People – How are the human resources managed?

™ Maintenance/Fleet – How are the capital resources managed?

™ Financial – Current and past measures that impact the Profit & Loss
Statement

™ Customer - Local market conditions and perceptions

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 The OPA Process – Data Collection & Analysis
Here are some of the critical categories and data that needs to be collected
that the OPA Process analyzes for establishing baselines for benchmarking
performance metrics

Category Data Collected and Analyzed

Site Organizational Structure
Site Layout / Ops. Area
Service Area Map
Open vs. Franchise (Market Conditions)
Labor Relations
Staff Responsibilities & Workflow
Skill Sets (Software utilized, routing methods, etc)
Yard, Parking Plan, Fueling Plan, Transfer Station, Office Layout, Driver
Check In/Out, Meeting Area
Boundaries of waste and recycling vehicle collection
Length of Current Contracts -
Competition – who are they, what do they do differently?
Restrictions – Pay Structure, contract expiration, union vs. non union

Disposal Options – Waste Streams Landfills and Transfer Stations (who owns them)
Location relative to Vehicle Depot
Average Gate Wait Times (different times of day, year)
Route Data How often used, updated by whom?
Has the City’s routes been re-routed? When? How many times?
Communication Phones or Radios? GPS?
Driver Meetings – How Often? Material Covered?
Site Staff Meeting – How Often? Material Reviewed

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 The OPA Process - Fleet & Maintenance Review

As part of our OPA process, we utilize the fundamentals of our program to

evaluate areas of opportunity for improvement in fleet maintenance utilizing
these three primary categories and collect the associated data as outlined in
the table below. This part of the OPA aids in determining frequency of
breakdowns, down time of equipment, door traffic and repeat offenders.

Category Data

Operational Maintenance Indicators Door Traffic, Downtime (breakdown), Cost per

hour / route

Asset Count Acquire Vehicle #, Truck Type, LOB, Max Load,

Age of Fleet Trucks, By LOB, Spare Ratio,
Management

Container Management Inventory, Locations, Management Plan

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 The OPA Process – How Long Does It Take?
The OPA is divided into the following key areas (phases). Each of the major phases of
the OPA has several subtasks (not shown). The following list highlights the major phases
that the OPA addresses:

Phases: Estimated Timeline (in Weeks)

One Data Collection 3
Two Data Review and Analysis 2
Three Route Audits for Improvement 4
Four Operational Improvement Process 1
Five Creating Profitability Models 1
Six New Business Improvement Process 2
Seven Assessment Workflow, Activities, and Timeline 1
Eight Assessment Tracking and Reporting Ongoing
Nine Development of Recommendations 1
Ten Implement Recommendations and Monitor Progress 2
16

Some of the Phases of the OPA are being performed concurrently for an average of 3 to 4
months total time elapsed from initial data request to full implementation.

** The timeline maybe able to be shortened based on existing data

data cleanliness and
access to key staff to assist in the OPA Process.

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Environmental & Logistical Solutions™
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 The OPA Process – What’s The Key To Success?

WIH Resource Group is dedicated to providing client-specific solutions. We realize that each
clients’ needs and operations are unique. Knowing this, we are innovative and flexible in
providing our clients with the best integrated and customized strategies to meet their specific
needs. We refuse to take a “cookie cutter” approach to tackling client challenges and
developing client specific solutions.

In developing strategic business solutions for clients, our OPA Process focuses on the
following four key areas:
PEOPLE
¾ Processes

¾ People PROCESSES
Optimal
TECHNOLOGY
Client
Solution
¾ Technology

¾ Resources RESOURCES

Focusing our OPA efforts on these four critical areas has proven to yield the greatest
improvement in productivity gain and cost savings, with the end result being a significantly
improved bottom line for our clients.

WIH Resource Group

Environmental & Logistical Solutions™
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 Contact Information

Bob Wallace
Principal and VP of Business Solutions

WIH Resource Group

2738 W Darien Way
Phoenix, AZ 85086-6668

Phone: 480-241-9994
Email: bwallace@wihresourcegroup.com
Website: www.wihresourcegroup.com

WIH Resource Group

Environmental & Logistical Solutions™
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