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quick P2 starts
Mark Boylan wrote
>I would like the group's ideas for an answer to this question. Assuming =
limited budget and resources, what are the three most effective things =
one=20
could do to show very quick Pollution Prevention results in an =
industrial facility? Assume no=20
one in the facility has ever heard of P2, and don't worry about specific =
waste streams. "Results" could mean waste reduction, cost savings, =
reduction=20
in health risks, basic P2 education, etc. >
I think that the fastest, most cost-effective way to get a facility on =
the P2 track is to get the general manager, the production chiefs, the =
accountants and the EHS people all in one room with a big white board. =
Then, with their input right there, map out a Total Cost of Waste (TCW) =
inventory of cost items. If you put a simple block flow diagram of =
their basic processes across the top of the white board, starting with =
Receiving of chemicals etc, it is easy to make columns of cost items =
under each one. Keep pushing them to complete the columns. Then ask =
them to ID which items they can estimate, right there. Add up =
everything they can estimate to get a first-cut TCW. Then start =
refining it, getting them to come up with estimates for the things they =
are not sure about. =20
At this point they will probably be pretty horrified. Every time I do =
this, the number of waste-related cost items under each block of the =
process diagram is starting to get so long it wont fit on the board. =
And they know damn well that these are real costs and they have no idea =
what they are. When they start to get concerned that you are actually =
on to something, then hit them hard with this:
Take your estimated rough total so far. Say it is $50,000. Now every =
TCW/TCA study I have ever seen shows that there are at least double the =
expected costs hidden in overhead. So take your total and double it, =
tell them why. They can't really argue, the previous step will have =
shown them they don't know what a lot of the costs are. So figure =
$100k. Then point out that an inflation rate of 10% will cause the new =
TCW to increase by 50% in five years, and environmental costs certainly =
are experiencing that kind of inflation (well maybe but you see the =
point). Here's a handy trick: Over 5 years, a 10% annual increase will =
amount to a total five-year cost of about 6 times your starting cost. =
So if they are spending $100,000 a year right now, then over 5 years =
they will spend about $600,000. =20
By this time you are talking about big costs to the boss and mgmt team =
and they are really interested in finding out what you propose. It =
should not take you more than one hour to get to this point.
This now gets even more fun! Take that total five year cost you just =
figured. That money is being spent on non-productive work, it does not =
create a return on investment. So what is their expected internal rate =
of return? Many companies say they are happy with an IRR of about 20% =
but they are lying. They really want at least 50%. The boss you are =
talking to knows it too. So that $100,000 per year you figured, if it =
was invested at 50%, you would make another $50K. But you are spending =
your money on waste instead so that is a LOSS of $50K in lost profits =
that would have accrued if you spent your money on production instead of =
garbage. So now total it: Figure $600K in estimated real cash costs, =
PLUS 50K x 5 yrs in lost profits for the next five years. So that is =
$850K we are at now. Remember we started with them thinking that their =
TCW was $50k a year? Now we are talking about a real $850k loss that =
they WILL HAVE if they don't DO SOMETHING.
In my experience at this point you can ask the boss if he would like you =
to lead a short discussion of P2 opptys all along the process, starting =
at the farthest upstream end. If they make products, it is helpful to =
have some at hand so you can point at aspects of their DESIGN that are =
affecting their costs. Like why is this spray-painted if it could be =
powder-coated with no VOCs? Or, what are your suppliers doing to find =
you less toxic ingredients, less packaging, etc. =20
All of this should not take more than 90 minutes. Seriously! Every =
time I have done it, now in several different countries, by the time we =
are done the boss has pointed his fingers around the room at people and =
said something like, "Find out, do something, and report to me in one =
month". If that doesn't jumpstart a P2 program, nothing will! They =
will come back with lots of things including some quick results like not =
doing some of the phenomenally stupid things they were just sort of =
doing.
Second idea: do this with energy costs
Third idea: do this with water costs
Burt Hamner
----- Original Message -----=20
From: WasteMin@aol.com=20
To: p2tech@great-lakes.net=20
Sent: Wednesday, May 16, 2001 8:41 AM
Subject: Three wishes
Hello, everyone.=20
I would like the group's ideas for an answer to this question. =
Assuming=20
limited budget and resources, what are the three most effective things =
one=20
could do to show very quick P2 results in an industrial facility? =
Assume no=20
one in the facility has ever heard of P2, and don't worry about =
specific=20
waste streams. "Results" could mean waste reduction, cost savings, =
reduction=20
in health risks, basic P2 education, etc.=20
For example:=20
- Issue a strongly supportive P2 policy statement from upper =
management.=20
- Identify and attack the facility's most pressing waste stream, then=20
publicize the results to show people what we mean.=20
- Create and deliver facility-wide P2 training.=20
I am interested in your ideas.=20
Thanks.=20
Mark Boylan=20
General Manager=20
WASTREN Inc.=20
22 Executive Park Court=20
Germantown MD 20874=20
(w) 301/540-0022=20
(c) 301/802-1732=20
wastemin@aol.com=20
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Mark Boylan wrote
>I would like the group's ideas for = an answer to=20 this question. Assuming
limited budget and resources, what are the = three=20 most effective things
one
could do to show very quick Pollution=20 Prevention results in an
industrial facility? Assume no
one in = the=20 facility has ever heard of P2, and don't worry about specific
waste = streams.=20 "Results" could mean waste reduction, cost savings,
reduction
in = health=20 risks, basic P2 education, etc. >
I think that the fastest, most = cost-effective way=20 to get a facility on
the P2 track is to get the general manager, the = production=20 chiefs, the
accountants and the EHS people all in one room with a big = white=20
board. Then, with their input right there, map out a Total Cost of =
Waste=20 (TCW) inventory of cost items. If you put a simple block flow =
diagram of=20 their basic processes across the top of the white board,
starting with = Receiving=20 of chemicals etc, it is easy to make columns
of cost items under each = one. =20 Keep pushing them to complete the
columns. Then ask them to ID = which items=20 they can estimate, right
there. Add up everything they can = estimate to get=20 a first-cut
TCW. Then start refining it, getting them to come up = with=20 estimates
for the things they are not sure about.
At this point they will probably be = pretty=20 horrified. Every time I do
this, the number of waste-related cost = items=20 under each block of the
process diagram is starting to get so long it = wont fit=20 on the
board. And they know damn well that these are real costs = and they=20
have no idea what they are. When they start to get concerned that = you
are=20 actually on to something, then hit them hard with this:
Take your estimated rough total so = far. Say=20 it is $50,000. Now every
TCW/TCA study I have ever seen shows that = there=20 are at least double
the expected costs hidden in overhead. So take = your=20 total and double
it, tell them why. They can't really argue, the = previous=20 step will
have shown them they don't know what a lot of the costs = are. So=20
figure $100k. Then point out that an inflation rate of 10% will = cause
the=20 new TCW to increase by 50% in five years, and environmental costs =
certainly are=20 experiencing that kind of inflation (well maybe but you
see the = point). =20 Here's a handy trick: Over 5 years, a 10% annual
increase will = amount to a=20 total five-year cost of about 6 times your
starting cost. So if = they are=20 spending $100,000 a year right now,
then over 5 years they will spend = about=20 $600,000.
By this time you are talking about big = costs to the=20 boss and mgmt team
and they are really interested in finding out what = you=20 propose. It
should not take you more than one hour to get to this=20 point.
This now gets even more fun! Take = that total=20 five year cost you just
figured. That money is being spent on=20 non-productive work, it does not
create a return on investment. So = what is=20 their expected internal
rate of return? Many companies say = they are=20 happy with an IRR of
about 20% but they are lying. They really = want at=20 least 50%. The
boss you are talking to knows it too. So that = $100,000 per year you
figured, if it was invested at 50%, you would make = another=20 $50K. But
you are spending your money on waste instead so that is = a LOSS=20 of $50K
in lost profits that would have accrued if you spent your money = on=20
production instead of garbage. So now total it: Figure $600K = in=20
estimated real cash costs, PLUS 50K x 5 yrs in lost profits for the =
next=20 five years. So that is $850K we are at now. Remember we = started
with=20 them thinking that their TCW was $50k a year? Now we are talking =
about a=20 real $850k loss that they WILL HAVE if they don't DO = SOMETHING.
In my experience at this point you can = ask the boss=20 if he would like
you to lead a short discussion of P2 opptys all along = the=20 process,
starting at the farthest upstream end. If they make = products, it=20 is
helpful to have some at hand so you can point at aspects of their = DESIGN
that=20 are affecting their costs. Like why is this spray-painted if it =
could be=20 powder-coated with no VOCs? Or, what are your suppliers doing
to = find you=20 less toxic ingredients, less packaging, etc.
All of this should not take more than = 90=20 minutes. Seriously! Every
time I have done it, now in = several=20 different countries, by the time
we are done the boss has pointed his = fingers=20 around the room at people
and said something like, "Find out, do = something, and=20 report to me in
one month". If that doesn't jumpstart a P2 = program,=20 nothing
will! They will come back with lots of things including = some quick=20
results like not doing some of the phenomenally stupid things they were =
just=20 sort of doing.
Second idea: do this with energy=20 costs
Third idea: do this with water costs
Burt Hamner
----- Original Message -----
WasteMin@aol.com=20
To: <3d.htm>p2tech@great-lakes.net =
Sent: Wednesday, May 16, 2001 = 8:41=20 AM
Subject: Three wishes
Hello, = everyone.=20
I would like the group's ideas for an answer to this question. = Assuming
limited budget and resources, what are the three most = effective=20 things
one
could do to show very quick P2 results in an industrial = facility? Assume no
one in the facility has ever heard of P2, and = don't=20 worry about specific
waste streams. "Results" could mean waste = reduction,=20 cost savings,
reduction
in health risks, basic P2 education, etc.=20
For example:
- Issue a strongly supportive P2 policy = statement=20 from upper management.
- Identify and attack the facility's most = pressing=20 waste stream, then
publicize the results to show people what we = mean.=20
- Create and deliver facility-wide P2 training.
I am = interested in=20 your ideas.
Thanks.
Mark Boylan
General Manager=20
WASTREN Inc.
22 Executive Park Court
Germantown MD=20 20874
(w) 301/540-0022
(c) 301/802-1732=20
wastemin@aol.com