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0 COMPANY PROFILE
Evjim food manufacturing company is a family owed company which was established in 1990.It is located in Oxford high street in London. The company produces fresh vegetable food, canned and frozen food for home consumption. Evjim Company has been registeredduly and boost of 200 workers at the moment. The company won the London municipal best food manufacturing company thrice in 1992, 1995 and 1999. The current customer base for the company is two million. Evjim food manufacturing was ranked second by The Times Newspaper in 2001 as one of the best food manufacturing industry in the United Kingdom. The companys turnover for the last three years has hit its record low with the just ended 2010 financial year been the alltime low turnover recorded in the company at 8million.
2.0 VISION
Evjim food manufacturing is committed to be the market leader in food manufacturing business in United Kingdom by 2015. The company is deter mined to expand its branch to all provinces by 2015. The company aims at increasing its customer base to10 million by 2015. Again, it is the vision of the company to provide good and quality services to all our customers and give them value for their money. The company is also committed to achieve ISO 14001 by 2014.
Evjim food manufacturing company owns the factory premises and the building as part of the companys asset. It also has food separator machine that segregates food according to data input given to the machine, food processing plant, food and vegetable washers, dish washers machine, grinding machine and storage tanks. The company boost of 250 skilled workers who manage all the processing and ensures that the target of th e company is achieved daily. The company has two
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official workers bus that carries workers to work daily, five distribution vans and a bigger van that conveys all raw materials to the companys premises.
4.0 LEGISLATIONS
All the applicable legislation rel ated to the activities of the company has been identified and documented in the companys Legislation Register for easy access and compliance. The company is committed to continual improvement of its activities and processes to meet all legislation it subs cribes to.
Legislation Register Ref 1 Legislation Transportation/Storage of Goods A Road Traffic Act 1988 Implications
All vehicles arriving and leaving the company should be licensed and maintained. All vehicles should meet emission standards specified the road and traffic regulation act .
Road Vehicles (construction & Use) Regulations 1986 The Road Traffic (Vehicle Emissions) (Fixed Penalty) Regulations 1997 Motor Vehicle (Type Approval) (Great Britain) Regulations 1986 The Carriage of Dangerous by Road Regulations 1996
Drivers of vehicles carrying dangerous goods must be appropriately trained and qualified
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Ref
Legislation
Implications
It is the duty of companies to make sure all waste is properly discharge according to the standards set by this Act. Again, appropriate documentation and certification should be obtained in that effect.
Groundwater Regulations 1998 Environmental Protection Act 1990 Oil Storage (England) Regulations 2000 Environmental Protection (Duty of Care) Regulations 1991
Health & Safety at Work Act 1974
Wastes should be managed properly to avoid any impact of it to the environment. Employers must be committed to implement steps to ensure the health and safety of their employees is assured. Workers must be made aware of all hazardous materials and information available on the risks the materials pose and safety precautions to be taken. Employers must implement a training scheme for all employees on this subject.
2 A
Batching/Packaging The Producer Responsibility (Packaging and Packaging Waste) Regulations 1997
All waste accrued from the processes should be handled and managed as specified by the regulation
3&4
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Ref
Legislation food
Implications
Appropriate steps should be taken to minimise the emission of noise and associated nuisance.
Health and Safety at Work Act 1974 The Environmental Protection (Control of Ozone Depleting Substances) Regulations 2002
All staff should be trained and made aware of all health and safety issues. Regulation demands that steps be taken and continually improved to minimise the emission of CFCs from equipments that release this chemical
Pollution
Pollution Prevention and Control (England and Wales) Regulations 2001 The Solvent Emissions (England and Wales) Regulations 2004
6 A Product Storage and Dispatch
A permit is required for printing activities using >5 tonnes of solvents. All activities of the company must meet the set standard limit by the 2004 regulation.
Companies that handles more than 50 tonnes of packaging and have annual turnover above 2m are required to register as a Producer and recycle and recover specified quantities of packaging
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Ref 7 A
Implications
This ensures food safety and protection of consumer expectation and quality.
This sees to it that all food manufacturing companies conduct their activities in a hygienic manner.
All food that goes to the market must be safe and has a legal backing should any company default.
All waste must be kept secure. Companies must pass on their waste to a registered waste carrier. A Duty of Care Transfer note should accompany the movement. The waste should only be taken to an authorised waste management facility
The Landfill Tax Regulations 1996 The Boilers (Efficiency) Regulations 1993
Landfill tax applies to all deposits of waste to landfill. Boilers in the size range 4 400kw fired by liquid fuels must operate at optimum levels of efficiency
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Ref C
Legislation
Implications
The Waste Management Licensing Regulations 1994 The Producer Responsibility (Packaging and Packaging Waste) Regulations 1997
Businesses must have permit to recycle and recover waste packaging. To issue packaging recovery notes the site must be an accredited reprocessed.
All discharges to sewer should be done in accordance to the standard specified by the sewage service and regulatory bodies.
The companys operations start from receiving of raw materials from suppliers for storage to ensure that the company is always stocked with raw materials to work with. Food processing starts by washing and cutting of the raw vegetables and raw food based on the order for the day. The washed vegetables and food are then transferred to the processing machine where chemicals are added. The prepared food is then packaged and batched for easy traceability. Finished food is either stored in the fridge or is transported to the various cus tomers that ordered. Evjim food manufacturing company has over the last two decades used the same machines for all its operations. The companys turnover for 2010 was 8million out of which 5% was spent on maintenance of all equipments and machines of the company, 8% on energy,5%on water and sewage,6% on waste and, 14% on purchase of raw materials, 55% on salaries of workers, fines paid as a result of nonPage 6 of 29 GYASI EVANS AKWASI-MSC OIL AND GAS MANAGEMENT
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compliance to legislation 3% of turnover, and profit for the year was 4% of total turnover. The breakdowns for the various expenses are detailed below which has warranted the need to improve upon the companys performance in this competitive market. Maintenance cost was 5% which amounted to 400,000 of the turnover and was spent as follows 200,000 was used to maintain processing machines alone for the whole year. There were 10 major breakdowns of the machines under review which had a bid toll on the company. 100,000 was used for vehicles maintenance since each vehicle visited the mechanic workshop at least 3 times every week. Again, spare parts and other services account for this huge cost. 100,000 was used to refurbish the companys building due to the collapse of the warehouse as a result of heavy down pour which erased half of the structure. The company spent 640,000(8% of turnover) on energy for all its operations under the year under review. Cost of electricity was 5.38p/kwh. 55762kwhrs was used hence the cost of electricity was 5.38*55762kwh=300,000 Cost of gas was 20p/kwh while 7,000,000kwh was used. It implies that the cost of gas was 20p*7000000=140,000 Cost of fuel was 1.86p/litre and 107527litres was used. Hence the cost was 1.86*107527=200,000 Evjim Company requires a lot of water for its operations. The company spent 5%. An amount of 400,000 was spent in that respect which represented 5% of turnover. There was a major leak of water which is part of such a high cost in water consumption since the water pipes were very old and had not been maintained for the past 20 years. Waste cost was 480,000 which was 5% of turnover Sewage disposal was 180,000 for the whole year Effluent discharge cost was 30p/m3 and amounted to 100,000
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Other waste treatments cost 200,000 for the year The company found defaulting on several occasions which led to fines. Improper waste handling and sewage fines paid was 120,000 Safety issues on the companys premises was found to be very low hence was charged 100,000 Refusal to meet legislations, regulations and specifications cost the company 100,000 in 2010. Raw materials for production and packaging stood at 14% of turnover. This covered cost of: Vegetables and other ingredients Raw food for processing Packaging materials needed for packaging the finished product Chemicals for the processing The above listed cost and breakdowns cover all the operational expenses for the company in 2010. This high expenditure coupled with concerns raised by the legislatorsof the food manufacturing industry and customers gave call to management to implement ISO 14001 to improve its operation and win back the confidence of its customers and legislators.
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PROFIT AND LOSS ACCOUNT FOR 3YEARS FOR EVJIM FOOD MANAUFACTURING COMPANY() ITEM INCOME Turnover( in millions of ) 2008 8,500,000 2009 8,300,000 2010 8,000,000
EXPENSES Operating Expenses Accounting and Legal Taxes Payable Insurance Office Expense Salaries and Wages Maintenance and Repairs Utilities Bank Charges Telephone TOTAL NET INCOME
702,000 200,000 445,000 612,000 15,000 4,315,000 395,000 978,000 13,000 6,500 7,681,500 818,500
712,000 198,000 448,000 613,000 18,000 4,438,000 398,000 979,000 12,950 6,895 7,823,845 476,155
726,000 150,000 450,000 615,000 20,000 4,400,000 400,000 980,000 12,000 7,000 7,760,000 240,000
Evjim Food Manufacturing is committed to operate in a manner where by its activities and operations impact on the environment is controlled to the barest minimum. It is in the policy of the company to provide quality and professional food and services in the food manufacturing industry which conform to international regulatory requirements and fully meet customer specification through the harness of up to date technology for innovation product development and continual improvement of processes while holding high the health and safety of both human and material capitals. Evjim food manufacturing is also committed to continually improving all the environmental aspects its scope of processing can control and influence by always
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making sure its impact to the environment is critically examined. The companys environmental aspects include the following; Raw material and storage Washing and cuttings of raw materials for processing Food processing Packaging and batching Transportation
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Raw material receipt and storage. Vege ables raw food, pac aging materials, c emicals and other ingredients
Process Electricity water chemicals Electricity, chemicals Heater, chiller Washing and Cuttings Raw food and vegetables for processing
Trimming Food waste, Off cuts and s eletal waste from food removed
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Waste Waste water, food trimmings and particles, CO2 emissions Noise, air pollution, CO2 emissions
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The management of Evjim after accessing the low performance of the company and the environmental aspects register identified key areas of improvement in the activities of the company. The Project Manager was tasked with developing an environmental improvement programme for each year. All financial savings made from the strategy has been planned to be reinvested in further environmental improvements. As part of strategies to be implemen ted to help in achieving certification of ISO 14001, the 4 key aspects of the companys processes identified for attentio n in the first five years were: Annual Targets Energy management Energy consumption reduction to 1.5% annually Objective To efficiently use fuel to reduce fuel consumption and emissions to air. Waste Management / Resource use. Annually reduce waste production by 2%. Zero waste to landfill within 5years.
People
Develop drainage plan in year 1. 5% Annual reductions in water consumption and discharge
To efficiently use water and reduce waste water impacts on the environment
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Five year environmental strategy developed has been outline for the company. The company aims at getting ISO14001 certification in the next four years by successful implementation and maintenance of this five -year strategic plan. Details of the improvement plans for each year is described in the section below.
Improvement Plan - Year 1 1) Energy Management- year 1 Good house keeping
Data gathered from the electricity company confirmed that the rise in the companys electricity consumption were as a result of inefficient energy use, old energy consuming equipments. Actions taken for the first year includes; All machines and office equipments left on after work as thought that the security personnel switched them off would be switched off after the days activities supervised by the officer in charge of operations for the day. Lights and heaters in the visitors room are left on all d ay even when people are not around. Lights in rooms where there is no activity going on would be switched off. Heating system would be put off at working hours since processing machines generates enough heat for the rooms which makes it a waste to still sw itch on heaters all day. Heater and hot water from taps were found to be very hot. Thermostat was adjusted.
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Evjim food company environmental team brainstormed to identify the various aspect of waste where the company could reduce to cut down cost. It was noted that the main cause of the high waste cost incurred in 2010 was largely due to inadequate problem solving and weak continuous improvement culture in the companys waste management processes. It was reviewed that half of the waste could have been avoided through sustainedcontinuous improvement. Actions to mitigate this include ; Damages during manufacturing process would be reused by heating. Staff would be trained to comply with laid down procedures in all processings to minimise waste as possible Operator processing and handling errors and change overs would be critically monitored to reduce waste from unmonitored processes Regular maintenance of machines and checks Waste reduction plan savings for year 1 = 5%
It was discovered through daily data gathered by the Environmental department of the company that, the company waste a lot of water daily. The major key areas of critical concern were flushing of toilets, washing of hands and improper closure of taps after hand washed. It was revealed that daily water wasted through this was equivalent to water needed to run a day s manufacturing in the company. The analysis below shows the details:
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WC FlushingAnalysis
Hand washing
Water needed=6litre/flush Each hand wash= 6litres of water Cost of a litre=10penny Daily cost is (250*4*6*.10) =600 Annual Cost (340days*600) =204,000 Source :( British Bathroom Manufacturing Association, Thames Water, 2006) Staff would be trained to use water efficiently by avoiding unnecessary wastage of water 3% reduction of effluent by cutting down the amount of che micals use in the company Food and vegetables washing would be done twice instead of the 4 -round washing which wasted a lot of water and energy. This would save 30% of water use in washing vegetables and food Water consumption and sewage saving for year 1 =2% cost per day (250*4*6*.10)=600 Annual cost (340*600) =204,000
Based on the data provided by the staff, it was discovered that 10% of the employees would be due for retirement in the first year. Hence 440,000 would be saved as a result of the no repl acement plan adopted for retire es.
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As part of the Companys strategy to reduce its environmental impact, sub meters and heat absorbers would be installed in year two to minimise energy cost. Prior to a study conducted by the environmental department of the company, these estimates were arrived. Conventional bulbs consumes a lot of energy (4p/watt) compared to energy saving bulbs (2p/watt). Hence energy saving bulb at a cost of 1200 would save 50% the cost of the use of conventional energy bulbs. Processing plant boiler was discovered to waste heat. It is estimated that 1 degree reduction in temperature saves 8% on heating cost (Carbon Trust, 2010: GJL141). Electricity sub meters installation at a cost of 2500 would help to identify and spread out demands to reduce charges from suppliers during peak and off peak seasons. Installation of sub metres and energy saving s for year 2 =1.3%
2) Waste Management-year 2
Evjim food manufacturing company suffered a fine of 10,000 for not segregating its waste. Remains from vegetables and food were mixed with chemicals, oil and trimmings from packaging. Actions to remedy the situation include;
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Waste pins would be position at various point of waste generation to ensure ways of the same disposal process is kept in the same bin. Waste separator would be checked at regular intervals during the processing to ensure that the right waste is stored in the right bin Waste would be compacted to reduce its volume. It is estimated that compacting waste alone saves 15% of waste disposal cost Written instructions of all waste handled by the company would be highly adhered to by punishing non -compliance staff to these measures. Waste Segregation and Disposal Alternative savings for year 2 = 3%
Sub meters and cisterns would be installed to monitor and reduce water wastage. Cisterns have the ability to store 105litres per flush and hand wash. 102,000 would be saved which is 25% on the cost of flushing and washing of hands per 2010 figures of the company. Water leaks were identified and repaired. Regular checks would be done weekly to check all leaks and maintenance done accordingly. Percussion push taps and flush control equipments would be in stalled at a cost of 1500. Water usage would reduce by 5%. Installation of monitoring Equipments savings year 2 = 1.3%
4) Employment Strategy-year 2
5% of the employees would go on retirement while 1% have notified management of their resignation.as part of the companys vision to diversify
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and achieve ISO 14001 in its 4 th year of the strategic plan, the company has in would not replace those employees but would buy new automated machinery at a cost of 8600 that requires lesser people. This would save the company 264,000. Savings for non-replacement for year 2 = 2.6%
1) Energy Management-year 3
The company reliance on one supply for its 20 years of existence has also contributed to the high cost of its energy consumption. A market survey was done on three energy providers.
Item Current Service Service 2 Service 3
9p/kwh=88,205 1.82/litre=195,700
76,273
The company would save 38,303 for option service 2 instead of the old service provider and 76,727 for choosing service providers 3 . Alternative service provider savings for year 3 = 1.5%
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In the companys bid to achieving ISO 14001, Evjim food manufacturing would buy new processing machines for all its operations at an estimated cost of 12,500. It was recorded that in 2010, 5% of the companys waste was caused as a result of the usage of the old processing machines for the company. Multi-purpose Ointment manufacturing plant which has pre -filtration unit, storage vessel, control panel, working platform and product piping would be installed. This would save in total 13% of waste generated by processing alone. The ability of the machine to regenerate and store power from the waste it produces would also save the environment and hence would help in the process of achieving the ISO standards. Purchasing of New Sewage Machine and Processing Plant savings for year 3 =2%
A survey was conducted and it was identified that the companys current water supplier is high compared to other service providers. Item Sewage Cost Water cost Current Supplier 50/tonne 10p/litre Alternative Supplier 48/tonne 8p/litre
2 would be saved on every tonne of waste which is 4% of cost of sewage and effluent treatment foe potion for alternative supplier 81,600 would be saved on water for switching to a lternative supplier(Severn Trent,2011) Alternative Supplier savings for year 3 = 1.4%
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According to the statistics 4% of the employees would retire by year three and 2% have been estimated to leave. This would save the company 264,000 which would help in getting the ISO 14001 certification. Savings on employment for year 3 = 4.5%
In the quest to obtain ISO 14001 and meeting all regulations requirements related to its processes, the company would install wind panels to trap and store wind for generation of energy for the operations of the company. Site analysis was done to measure the local wind speed and was found to be appropriate for wind energy produc tion Wind turbines of 2MW,utility system upgrades, transformers, protection metering equipment, insurance, warranty, maintenance and repair c ost for the installation is 1million which would save 90% of energy cost. All the heating and cooling, lighting, h eating of water and operating appliances for the year would be 100% powered by the solar energy generated. The turbine has the capacity to generate 600watt of energy per day which can cover the energy need of the company and the remaining sold to nearby residents. It was estimated that sales for the extra energy generated would generate 150,000 annually. Installation of wind turbines savings for year four - 100%
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With the installation of new machines, the company would switch to internal recycling of its waste generated. Recycler would be installed at a cost of 12 ,000. Metal packaging of food would be changed to paper packaging for easy recycling. This would save cost of packing and energy needed for recycling. Suppliers of the companys raw materials have agreed to package all raw materials for the company with recyclable materials.
A study was conducted and was reviewed that sewage cost would fall by 20 -25% if it goes through primary treatment to remove all particles and dangerous chemicals before discharge (www.fao.org) Trickling filters would be installed at a cost of 1650 which would filter food particles and other chemicals Injection of waste chemicals for processing would be done which has the capacity to reduce cost by 0.5%(Environwise.wrap.co.uk, 2009) Primary Sewage Treatment savings for year 4 = 1.5%
The staff strength in year four would fall to 120 as 2% would retire that year. Savings for year four would be invested in getting ISO 14001 certification. As per the study done by the research group of the company the non -replacement of the retirees
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would not have any adverse effects on the company sinc e automated equipments are in place to speed up processes. Savings for the four year = 2 %
The company aims at achieving ISO14001 certification by strictly following the outlined plan below. The schedules for each year toward the attainment of ISO 14001 have been clearly defined in the Gantt chart attached in Appendices A. The cost of the certification would be catered by the savings accrued from the environmentalstrategy implemented. The estimated cost for the attainment of ISO 14001 for the company is detailed below.
Year Activity Cost
Gap Analysis and Integration of Companys QMS To meet ISO standards 2500.00
2 3 4
Total
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Below is the flow diagram showing the planned activities to be followed before the final ISO 14001 certification could be achieved.
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Year 1
Year 2
Year 3
Year 4
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It was identified that with the new machines in place, installation of new high electric motors would save energy by 3% over the standard motors(Envirowise 2003: GG77e). New vehicles would be purchased to cut down fuel and maintenance cost. Regular plan for maintenance and servicing of machines have been drafted to make sure machines work efficiently and use energy as efficiently as possible. Savings for year 5 = 100%
The company aims at producing its own vegetables for all its manufacturing. In light of this composting and anaerobic digesting would be considered to restore the fifty hectares of land the company owns to cultivate vegetables. 5% of cost on raw materials would be saved as a result of the company producing its own vegetables It would reduce the amount of waste that goes to the landfill and hence its cost involved Extra compost would be sold to other soil growers. Savings for year five = 95%
The company would treat all its sewage and effluent internally
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A pole hole would be constructed and its equipments at a cost of 80,000 to help treat all sewage and effluent discharge Appropriate permit and legislations would be acquired in that effect A treatment tank would be purchase to treat all the sewage and effluent discharges of the company. Savings for year five = 100
4) Employment Plan-year 5
Additional 10 employees would retire from the company which would leave the staff strength at 100. This would save the company 2% of salary. Hence by the end of the five year strategic plan, total cost on staff would have been cut by 50%.
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Conclusion
It could be seen from the above analysis that Evjim food manufacturing would stand as a formidable force in the next 5 years. The companys strategic environmental plan would save it 2,260,530 at the end of five years plan and would be certified as well in the fourth year. Again, this strategic plan would rebrand the company and makes it more competitive and productive. Therefore, it is of no doubt that Evjim food manufacturing would achieve its goal of been the leading food manufacturing in the United Kingdom by 2015 after successful implementation of this strategy.
12,000
-4,500
8,000
380,000
415,500
4,740
6,720
5,550
400,000
426,610
264,000
264,000
88,800
88,800
1,145,600
2,291,530
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References: Carbon Trust 1999 Energy in plastic processing, a practical guide, Good practice guide 292. HMSO Carbon Trust 2000 Energy savings from motor management policies. General info sheet 56. HMSO Carbon Trust 2010 GIL141Energy saving fact sheet Industrial companies. HMSO Carbon Trust 2004 Switch to saving poster. HMSO Environment Agency 2005 Accreditation of reprocessors and exporters of UK packaging waste. (Online) Available from http://www.environmentagency.gov.uk/commondata/acrobat/acc_gn01_563944.pdf November 2005 Envirowise 1999 Are your profits going down the drain . ET196. Envirowise. Envirowise 2003 GG377e Resource Efficiency: Cut costs in plastic processing . Envirowise 2010 GG376 Benchmarking report on waste in plastics processing . Envirowise 2011Cost effective water saving devices and practices for commercial sites. GG522. Envirowise. Envirowise 2009Preliminary Sewage Treatment. (Online) Available at http://www.envirowise.wrap.co.uk. Food Industry regulation.com (2011) General Food law.(Online) Available at http://www.food.gov.uk visited on 10/06/2011 Foa.org (2011) Reducing Waste Treatment. (Online) Available at http://www.foa.org visited on 10/06/2011 UK regulations.com (2008) Landfill Tax. (Online) Available at http://www.letsrecycle.com visited on 10/06/2011
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