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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).
+ 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
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).
n Objectives
n how to identify the impact of energy and
n develop and manage systems to monitor
n assess energy and resource efficiency
n engage their staff in adopting new energy and
n develop simple, prioritized and costed
n Today: n Leave with increased knowledge of: n The Concept of energy and materials efficiency,
n Understanding that businesses in the sector have
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)
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
and McKinsey & Co intangibles generic model.
Source: Investa
n Eco-efficiency Savings directly increase Profit:
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?
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
n More detailed implementation,
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
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
n Efficient models n Life-time cost n Grant Funding Available?
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.
Business Case Studies Nobody Denim Onterra Carpets Beaulieu of Australia Geofabrics Australia
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
Energy and Materials Assessment Funding Assistance from Sustainability Victoria for the above. Already Lean Manufacturing in place:
n 5S n Visual Manufacturing
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%
Fashion designer and manufacturer
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
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
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
Modular carpet designer and manufacturer
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.
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
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
What did they do?
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
Geosynthetic designer and manufacturer
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
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
Geosynthetic designer and manufacturer
n Design and process changes to conserve 258
n Worked with the Council to reduce waste to
Free Site Visit to Geofabrics Australia on 19 November 2014 Book at: http://www.tfia.com.au/events-training
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?)
industry events
Lighting: High Bay can cost $400 per pair per year to run. No Cost
Low Cost
allow light without heat.
areas.
Invest to Save
(fluoro sensor or LED).
Compressors: 3 to 5 mm air leak can cost $3K/yr No Cost
Low Cost
Invest to Save
Waste: Waste Costs more than the disposal cost No Cost
double what you need to Low Cost
suppliers and customers Invest to Save
Learning from Nature (the longest running R & D Department) http://biomimicry.net
start an efficiency or sustainability program and how would you go about getting it?
within your company already?
energy, water or waste efficiency?
savings.
and effective savings you can make.
transformational change!