Loss Reduction Approach & Application

Dressings Regional Workshop Asia 2006

What Is Raw Material Waste?

Losses of the many materials used to make our products. Understand where our Raw Materials are used or are lost from Delivery to Dispatch?

Delivery Eggs

Manufacturing (Process)

Dispatch

Oil
Known & Unknown Losses

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Understanding Loss A Structured Approach

Typically follows a 5 step approach

Collect base/available information Develop a mass balance Analyse Major users/generators Identify Improvement Measures Maintain management control What is involved ..?

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Measurement

STAGE 1: COLLECT BASE INFORMATION

Identify available Information Determine associated costs Understand reasons for variability Identify measurement gaps

Balancing

STAGE 2: DEVELOP BALANCE

Collate available information Determine major users Develop outline balance Improve balance (accountability)

Analyse

STAGE 3: ANALYSE MAJOR USERS / GENERATORS

Technical investigation (checklists) Assess performance (standards) Compare performance (benchmark) Determine improvement scope =gap

Identify Options

STAGE 4: IDENTIFY IMPROVEMENT MEASURES

Rank identified opportunities (cost benefit) Implement no and low cost opportunities Confirm effectiveness Assess good practices from other sites

STAGE 5: MAINTAIN MANAGEMENT CONTROL

Sustain Improvement

Standardise improvements

Maintain monitoring programme

Identify deviation from standards

Implement further opportunities

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Identify Waste Minimisation Options - The Waste Hierarchy

ELIMINATE

DESIRABILITY

MINIMISE RE-USE RECYCLE TREAT DISPOSE

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Non Haz waste kg/ton

NON HAZADOUS WASTE KG/TON

25 20 15 10 5 0

Improvement Strategy
HP CA HP CE HP CN A HP CL A IC FF G UB FA UB FE UB FN A UB FL A
ARG NAM ET 19.779 17.115 12.114 HPCA 4.475 3.954 4.433 HPCE 4.596 2.914 4.472 HPCNA 8.618 8.067 8.994 HPCLA 4.385 4.427 4.106 ICFFG 23.658 19.782 16.412 UBFA 21.789 11.136 10.329 UBFE 11.547 9.23 9.391 UBFNA 14.613 13.678 14.236 UBFLA 10.637 14.919 13.62 17.727 12.308 15.095

Waste Type Mixed waste Target Sludge

Organic General

Spent earth
Specific Others

2001 2002 2003

Business Groups 2001 2002 2003

Canteen Card Paper Total waste to landfill

AR G NA M ET

STEP 1 - Define Position

- EPR KPI Information - Site environmental impact

STEP 2 - Determine gap

- Define required position = TARGET - Identify gap between present and target
Site Waste Balance

Technical investigation - Loss tree analysis - 5H + 1W analysis Plant Utilization - why, why, why

10000000 9000000

% 52 % 13
% 7 % %%% 6 6 5 5 % 4

STEP 4 - Individual Wastes

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

STEP 3 - Set Priorities

- Key waste types - Major costs

8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0

% 1%1 1% %

Production Energy Production Production Illuminazione Bakery Varie Development MMD Areas Services Area 2 Area 1 ColdstoreEffluent Mix e CIP General

7294041420244032209743163200281844927299062215165661613 548833 155163 67950 Kwh 29226443

Department

Measurement definition - what, how, when Data analysis - trend analysis Identify options - opportunities - good practices Result check - improvement achieved

STEP 5 - Confirm effectiveness

- Compare result to target - Define new standards

STEP 6 - Determine Improvement

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

Example : Electricity Line 2 (Year 2)

1400000 1200000

KWhr
2002 2001

Target

1000000 800000 600000 400000 0

5000

10000 15000 20000 25000 30000 35000 40000

Waste Type Mixed waste Target Sludge Spent earth Specific Others

Production (Tonnes)

STEP 7 - Standardise Improvements

- Conditions to maintain improvement - Identify needs e.g. training, new procedures, work instructions etc

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Dressings Global RM Waste Reduction Project

Challenge 13 million Euro Global RM waste ! How should we approach this ?

Regional Focus & Teams Local Issues Resolved Locally Implementation of Global Theme Learning's Global Themes Common Issues - Do it Once & Roll Out Hands On Support (SEAC, FRC) Large Opportunity Plants Global Themes

Phase 1 Pilot Site Reviews to determine issues & focus

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Pilot Site Results - Baie dUrfe (Canada)

Overweight 38.28%

Start-up waste 25.01%

Capped loss 2.92% Quality loss 0.17% Uncapped loss 0.97% Shutdown waste (including changeover waste) 32.64%

Start-up waste Shutdown waste Uncapped loss Quality loss Capped loss Overweight

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Pilot Site Results Delft (Holland)

WASTE BC-2 2004 (524.000 euro)
sam pling 15% Technical errors 5%

Hold-up + start/stop 24%

Incidents 32%

Left over after production 24%

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Mass Balancing Accountancy

Traditional approach in many businesses is the Accountancy Mass Balance. On-going analysis (monthly reporting) Based on accountancy data Inflows: weight of all ingredients purchased Outflows: all products produced Zero Based Loss (ZBL)

Inputs (,$,, )

Output (,$,, )

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Detailed Mass Balance

Product loss Recycled product Giveaway loss Packaging losses Losses to wastewater

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Dressings Loss Reduction Project

Pilot Site Approach Regional Roll Out Standard loss tree - 100% accountability - major losses Standard measurement / reporting format - Existing / additional requirements - Unpacked / packed losses / wastewater Exchange of good practices Loss reduction opportunities - Pigging / HVLP / intelligent pipe - Add back systems

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Understanding Loss Available Site Data

Assess what has already been done TPM, Loss Studies What is currently measured / reported EPR return / Category Information If it isnt measured It cant be controlled. Identify gaps in existing knowledge.

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Understanding Loss Sources of Loss

Plant Cleaning Controlled loss Uncontrolled loss Product changeovers Product or raw material spillage Overfilling / giveaway Start-up and shutdown Off specification - packed / unpacked Others?

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Understanding Loss Reasons for Loss

Many reasons why loss occurs Examples

High number of SKUs / short run lengths Production scheduling Machine design / machine operation Dedicated lines / flexible lines Incompatible products Untrained operators Off specification lack of raw material / insufficient operators Operational efficiency

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Improving Accountability
Where could other losses occur?

Spillages Leaks Forced stoppages Power outs, Clean Downs, Fire Drills or emergency situations. Vessel & Line Hold Ups Operator Error

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Understanding Variability

Shift Patterns 1, 2 or 3 shift operation Operator Judgement and Procedures Type of packaging format Run Length Production schedule

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Where do losses Go?

Landfill Overfill Waste Water Theft?

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Losses to Wastewater

Wastewater is Dilute product Need to quantify material (product) sent to effluent treatment plant Instigate period of detailed monitoring (3rd Party?) to monitor influent for COD & TFM content of effluent (Dilute Product) Push through and pack (Production Matrix) rather than CIP to ETP
COD Flow

ppm or Mg/l

m/hr

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Tools - Bringing it all together Implementation of SLT

Aim - All Information collected and quantified in one place.

All events associated with production need to be identified (i.e. Type of changeover Push through, full CIP) Exercise needed to accurately quantify losses associated with changeovers, start up & shut down, Number Of? All Losses associated with each production run need to be recorded e.g. process log sheets. Key areas of loss identified Accurate comparison of what should have been used to what was actually used

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