+ Business Case for Efficiency Resilient and Competitive TCF - - PowerPoint PPT Presentation

business case for efficiency resilient and competitive
SMART_READER_LITE
LIVE PREVIEW

+ Business Case for Efficiency Resilient and Competitive TCF - - PowerPoint PPT Presentation

+ Business Case for Efficiency Resilient and Competitive TCF through Energy and Materials Efficiency 14 th August 2014 Andrew Chamberlin The project is funded by Sustainability Victorias Smarter Resources Smarter Business program and


slide-1
SLIDE 1

+

Business Case for Efficiency

14th August 2014 Andrew Chamberlin

The project is funded by Sustainability Victoria’s Smarter Resources Smarter Business program and delivered by the Council of Textile & Fashion Industries of Australia Limited (TFIA).

Resilient and Competitive TCF through Energy and Materials Efficiency

slide-2
SLIDE 2

+

Introductions

slide-3
SLIDE 3

Topic Timing (mins) Introduction Welcome 10 - 15 Purpose, Program 5 Today’s Agenda 5 Content Efficiency 10 Why Efficiency? 10 - 15 Why Not Efficiency? Potential for Savings 20 Business Case and Case Studies 30 - 35 Things you can do today 20 Wrap Up Summary 5 Next Steps 3 Contacts, Further Info 2 TOTAL 120

Today’s Agenda

slide-4
SLIDE 4

n Objectives

Increase knowledge and skills …

n how to identify the impact of energy and

resource costs on the business.

n develop and manage systems to monitor

energy and resource costs

n assess energy and resource efficiency

  • pportunities

n engage their staff in adopting new energy and

materials efficient processes.

n develop simple, prioritized and costed

efficiency action plans

Purpose of the Program

slide-5
SLIDE 5

Introduction

slide-6
SLIDE 6

n Today: n Leave with increased knowledge of: n The Concept of energy and materials efficiency,

and how it relates to sustainability

n Understanding that businesses in the sector have

undertaken energy and materials efficiency projects that have significantly reduced costs and improved the environmental performance of a business

Purpose of the Program

slide-7
SLIDE 7

Sustainability is:

n Better Environment n Social Outcomes n Profitable Business employing people n Sustainability is about long term prosperity.

(triple bottom line, intergenerational equity)

Sustainability and Efficiency

slide-8
SLIDE 8

+ Sustainability and TCF

slide-9
SLIDE 9

+

slide-10
SLIDE 10

+ Sustainability Roadmap

Reducing risks Reducing costs Increasing short-term revenues Increasing long- term revenues and value FY01 FY02 FY03 FY04 FY05 FY06 FY07 NOW & BEYOND

VALUE* TO GROUP ($) TIME

* Adapted from DowseCSP building

  • n PwC tangibles value hierarchy

and McKinsey & Co intangibles generic model.

Source: Investa

slide-11
SLIDE 11

+ 7 Principles of eco-efficiency

  • 1. Reduce the material intensity of goods and services
  • (make more stuff with fewer inputs)
  • 2. Reduce the energy intensity of goods and services
  • (make more stuff with less energy)
  • 3. Reduce the dispersion of any toxic substances
  • (make more stuff with less poisonous waste)
  • 4. Enhance the recyclability of materials
  • (make the stuff recyclable)
  • 5. Maximise sustainable use of renewable resources
  • (make stuff out of stuff that won’t run out)
  • 6. Extend the durability of products
  • (make stuff that lasts)
  • 7. Increase the service intensity of goods and services
  • (meet demand with a service and not with stuff)
slide-12
SLIDE 12

+

  • 1. Can any of these principles of eco-efficiency be

applied to your services or products?

  • 2. Have you done/are thinking about any projects?

Can you:

  • Produce a product that performs the same function with less

material?

  • Provide your service with less energy, water, waste?
  • Remove toxic chemicals from your supply chain?
  • Make your materials more recyclable?
  • Use more renewable resources?
  • Make products last longer?
  • Increase Service intensity?

Application of ecoefficiency

slide-13
SLIDE 13

+

Why Efficiency?

Compliance Recognition Customers “The right thing to do” Financial Savings

slide-14
SLIDE 14

+

Why Not Efficiency?

Don’t know enough about it No Money Too Busy Don’t Know Where to Start Worth the effort?

slide-15
SLIDE 15

+ Energy and Waste Heirarchies

slide-16
SLIDE 16

+ Savings Impact on Profit

n Eco-efficiency Savings directly increase Profit:

Given 5% Margin: $1,000 of Savings equates to $20,000 of Sales!

What do you need to do to have that same impact on Sales? How many units would you need to sell? How long would that take? Would you need extra people, systems, space? What is the long-term impact of that extra margin on your business?

slide-17
SLIDE 17

+ Potential Savings

What to look for.

slide-18
SLIDE 18

+ No Cost Activities

Easy to Implement:

n Turn-off unused lights and equipment n Accessible and labelled recycling bins n Air conditioning temperature n Default printing double-sided n Green Initiatives notice board: n Report potential and actual savings n Efficiency tips and stories n Car pooling contacts

slide-19
SLIDE 19

+

n More detailed implementation,

generally time or maintenance

n Management and Process n Start up & shut-down n Maintenance n Scheduling n Equipment Stocktake and Planning n Work with utility providers n Replacement & Recurrent n Lights n Appliances n Timers, Sensors n Variable Speed Drives, HVAC, Heat

Exchangers etc.

Low Cost Activities

slide-20
SLIDE 20

+ Invest-to-Save

n Capital expenditure n Full retrofits n Replacement of key plant n New Plant n Plan Ahead n Key plant is key plant – down time

is $$

n Efficient models n Life-time cost n Grant Funding Available?

slide-21
SLIDE 21

+ Potential Savings

Prioritising.. Boot-Strapping..

slide-22
SLIDE 22

+ Question:

n Do these ideas highlight anything you can do?

n Raise any questions or if’s and but’s?

n Have you done any of these?

n How did the ideas originate in the business? n What outcomes?

n Business Case vs Green Case.

slide-23
SLIDE 23

+

Business Case Studies Nobody Denim Onterra Carpets Beaulieu of Australia Geofabrics Australia

Efficiency for Small Businesses

slide-24
SLIDE 24

Staff Communications and Suggestions

n 5 teams n Suggestion boxes – all ideas investigated and

reported on Culture – letting people know it’s OK to tell the boss how you think things could work more easily.

Target: Wanted to find 50% resource savings through efficiencies and consolidating

  • perations

Energy and Materials Assessment Funding Assistance from Sustainability Victoria for the above. Already Lean Manufacturing in place:

n 5S n Visual Manufacturing

Case Study: Nobody Denim

slide-25
SLIDE 25

+

Energy:

n Lighting Upgrades n Purchase of new energy efficient equipment such as sewing

machines, washers, gas driers – to be installed in the coming months:

n Laundry boiler upgrades, insulation n Energy Savings forecast: 45%

Case Study: Nobody Denim

Fashion designer and manufacturer

slide-26
SLIDE 26

+ Case Study: Nobody Denim

Materials:

n Detailed materials assessments:

n Purchase price of waste fabric = 20 times disposal cost n True cost of wasted finished product = 425 times disposal cost

n Forecast Materials Savings:

n 10% in fabric, 11,880kg n 45% chemicals

Fashion designer and manufacturer

slide-27
SLIDE 27

+

slide-28
SLIDE 28

Energy:

n encouraging staff to switch off equipment when not in use. Annual

Saving: $3,000

n tuned the gas burners, cutting total gas consumption by around four per

  • cent. Annual saving $5,000.

n Leak minimisation for compressed air to reduce continuous power

requirements for by 30 per cent, Annual Saving: $10,000

n Light sensors and skylights in the factory. Annual Saving: 6,000 kWh of

electricity ($1,500 @ 24c/kWh)

n Revised car purchasing policy with increased emphasis on fuel efficiency. n installed solar powered security lighting in the car park area

Case Study: Onterra Carpets

Modular carpet designer and manufacturer

slide-29
SLIDE 29

Case Study: Onterra Carpets

Modular carpet designer and manufacturer

Materials:

n More efficient yarn processing equipment has improved

production yield, with expected raw material savings of up to $500,000 per annum and a 15 month payback period

n Product Development

n alliance with Dunlop to investigate recovery and reuse of Ontera’s

carpet trim waste.

n fully recyclable non-PVC carpet tile backing system and a

reconstituted polyurethane foam carpet tile cushion backing

n a carpet tile backing made of crumbed rubber, with the opportunity

to reuse car tyres

n designing carpet tiles for disassembly with an in-built ‘zippering

layer’, resulting in simple separation using a low-energy process

n extending the life of carpet tiles through reuse as an alternative

acoustic panel or noise attenuation barrier.

slide-30
SLIDE 30

+

slide-31
SLIDE 31

Sustainable Value Stream Mapping

n Mapping production flow n Analysing electricity bills n Creating action plans:

n Consumption and peak demand

n Monitors on Machines n Found only 40 – 45% of electricity use

was embedded in the product – contributed to value-adding processes

Case Study: Beaulieu of Australia

Woven fabric manufacturer - Jacquard weaving mill

slide-32
SLIDE 32

n Policy to use large energy consuming machines on

alternate days

n Switching off lighting in unused areas n Recycling Cones, Cardboard, Yarn n Next steps (Stages 2 and 3)

n Weaving looms at higher speeds n Reduce stand-by power consumption by switching looms off

when not in use

n Energy savings of 5 – 10% for Stage 1 n Waste reduced by 16% n Efficiency Savings of $11,000, plus: n Peak electricity costs reduced by $1,000 per month

Case Study: Beaulieu of Australia

What did they do?

slide-33
SLIDE 33

+

n Brainstormed ideas:

n Some good ideas including energy-efficient compressors, motors,

lighting, insulation, ducting, natural light, purchasing and process design

n Continuous Improvement through Lean Manufacturing n Engaging and communicating with Staff n Measurement of environmental footprint

n Greenhouse gas inventory and carbon audit n List of actions to reduce climate change risks and opportunities n Related energy consumption to production units – kWh/kg

Case Study: Geofabrics Australia

Geosynthetic designer and manufacturer

slide-34
SLIDE 34

+

Energy:

n New Compressor, reducing kWh per kilogram from 1.28 to

1.17, saving 1,600 MWh per year and $240,000

n Improvements to transport logistics, Saving $200,000. n Installed power factor correction equipment expected to save

$30,000

Case Study: Geofabrics Australia

Reduced energy intensity (kWh per kg of product) by 50% between 2006 - 2012 “We are making more but consuming less power” Geosynthetic designer and manufacturer

slide-35
SLIDE 35

+ Case Study: Geofabrics Australia

Geosynthetic designer and manufacturer

Materials:

n Design and process changes to conserve 258

tonnes of raw materials and save $310,000

n Worked with the Council to reduce waste to

landfill by 31%

Free Site Visit to Geofabrics Australia on 19 November 2014 Book at: http://www.tfia.com.au/events-training

slide-36
SLIDE 36

+

What actions or projects may be suitable for your business? Could you do them straight away? What would you need to do to be able to implement them? What Knowledge and Skills were applied? How did these companies address some of the barriers (why not efficiency?)

Efficiency for Small Business

slide-37
SLIDE 37
  • Time commitment
  • Will take some time, but look for synergy
  • Knowledge and Skills:
  • Getting to know your data
  • Opportunity Assessment – walk-through
  • Not necessarily audit
  • Staff engagement and development: lean & green teams
  • Develop project ideas and business case
  • Technical
  • Feasibility
  • Cost-benefit
  • Networking with other participating businesses – attending

industry events

  • Research

Energy and Materials efficiency: What’s Involved?

slide-38
SLIDE 38

Lighting: High Bay can cost $400 per pair per year to run. No Cost

  • Switch off unused lighting.

Low Cost

  • Install/repair skylights with hoods to

allow light without heat.

  • Rewire lighting to match functional

areas.

  • Timers, light sensors

Invest to Save

  • Upgrade to energy efficient lighting

(fluoro sensor or LED).

Today

slide-39
SLIDE 39

Compressors: 3 to 5 mm air leak can cost $3K/yr No Cost

  • Reduce Pressure if possible.
  • Switch off compressor when unused.

Low Cost

  • Repair leaks, remove unused lines.
  • Cool air intake (shading, ventilate).

Invest to Save

  • Install VSD or Air Recycling System.

Today

slide-40
SLIDE 40

Waste: Waste Costs more than the disposal cost No Cost

  • Is your bin full when collected?
  • If not, how full is it? If ½ full, you may be paying

double what you need to Low Cost

  • Plastic Recycling
  • Fabric Recycling
  • Purchasing – optimise supply sizes/lengths with

suppliers and customers Invest to Save

  • Product and/or process redesign.

Today

slide-41
SLIDE 41

Learning from Nature (the longest running R & D Department) http://biomimicry.net

Don’t just look for the incremental improvements

slide-42
SLIDE 42

Discussion

  • What level of commitment would you need from your company to

start an efficiency or sustainability program and how would you go about getting it?

  • Do you have a green team, sustainability committee or champion

within your company already?

  • Are there opportunities in your business to make savings through

energy, water or waste efficiency?

  • Can any of those be done straight away?
slide-43
SLIDE 43

Final Points

  • You don’t need to spend money to start making good financial

savings.

  • Your colleagues and staff will have great ideas about some simple

and effective savings you can make.

  • There are businesses who have done this before.
  • Think about the incremental improvements, but look out for the

transformational change!

slide-44
SLIDE 44

+

Richard Goode Director of Sustainability at Alcatel-Lucent said

"In good times, sustainability can be a competitive differentiator, in lean times, it's a defensive strategy and in really hard times, it can determine your survival."

slide-45
SLIDE 45

What’s Next?

  • Free Site Assessments:
  • On your site
  • 2 hours + follow-up opportunities report.
  • Free Site Tours:
  • Geofabrics (Albury)
  • Australian Textile Mills (formerly Bruck)(Wangaratta)
  • September (TBA)
  • 3 more workshops (4pm Thursday)
  • 16 September – DIY Efficiency
  • 20 November – Opportunities Assessment
  • 26 February – Engaging Staff
  • Web Resources:
  • Fact Sheets
  • Case Studies
  • Implement some projects
slide-46
SLIDE 46

+

The project is funded by Sustainability Victoria’s Smarter Resources Smarter Business program and delivered by the Council of Textile & Fashion Industries of Australia Limited (TFIA).

Evaluation forms please! Survey!

slide-47
SLIDE 47

+ Contacts

Andrew Chamberlin 0412 242 316 andrew@limebranch.com http://www.tfia.com.au/energy-and-materials-efficiency