Increase Efficiency - Increase Profit

Increase Efficiency - Increase Profit is a step-by-step guide to help you take actions or devise an action plan and achieve real improvements in your organisation.
(Adapted from "Reduce Waste - Increase Profit", by
AEA Technology)

While following this document, you may also wish to use the waste savings calculation and the utilities and waste monitoring sheet.

Five steps to increasing profits
Savings on WATER
Savings on ENERGY
Savings on SOLID WASTE AND PACKAGING
Savings on TRANSPORT
Developing Environmental Management Systems


Increase Efficiency - Increase Profit
  • Reduce operational costs
  • Comply with legislation
  • Improve image

On average UK companies spend 4% of turnover on waste - a quarter of this, or 1% of turnover, can be saved.

Reducing waste, not just what ends up in the bin, but wasted water, electricity, fuel and time as well, makes financial sense. Previous work in the Vale of White Horse lead to savings of some £500,000 from ten companies. This study identified savings for service as well as for manufacturing companies.

The first step is always the hardest and this pack is designed to help time-pressed managers make a start and point them in the direction of further resources and information.


Increase Profits - follow these steps

Step 1

Take responsibility Someone, somewhere has to take responsibility for making improvements. He/she could be a manager or simply someone with a keen interest in improving business performance. This person must have support from senior colleagues. Some tasks and responsibilities of this Co-ordinator are suggested below.


Step 2

Collect information The Co-ordinator should collect whatever information is available. Bills for water, electricity, waste collection are often good places to start. A walk around the offices or workshop is a good way of spotting areas for improvement.


Step 3

Identify quick savings The best way of keeping people interested is by saving money. Step 2 should show you where this is possible, i.e. those areas producing the most waste, or costing the most money. Other staff may have ideas for ways to save money.


Step 4

Make these savings Savings then have to be made. This will raise interest and increase levels of support that should make the following steps easier to take. Use team talks, set performance targets, have competitions, discuss issues with customers and suppliers. And remember, savings could be used to fund further improvements.


Step 5

Longer-term plan Having made some quick gains, the Co-ordinator could consider planning for further savings. One way to do this is by looking at process flows - this will help to prioritise action areas.


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Water

Did you know that you pay for your water twice? Once when it enters your site and once when it leaves. There are opportunities to make savings on both the input to, and output from, a site.

This section deals with the way in which water is used and suggests actions that can be taken to reduce the consumption and the associated costs.

Have you considered....?

  • The volume of water you use?
  • The cost of this water?
  • The volume of trade effluents that you produce?
  • The cost of effluent discharge?
  • How you could reduce consumption?
  • How you could reduce effluent production?

Areas to reduce water wastage in and save money

Raise awareness - many staff don't appreciate the costs of water

Review costs and charges - what can't be measured can't be done

Improve housekeeping - simple housekeeping measures can make significant savings

Consider improved washing practices - large volumes of water are used, and lost, through washing activities

Other low cost practical measures - large cost savings can be made at zero or little cost

These action areas and appropriate measures are explored further in the table below

Practical hints and tips

ACTION AREA MEASURE
Raise awareness
  • Staff may be unaware that supplies are metered
  • Encourage all staff to suggest ways to reduce consumption
  • Use staff meetings as a means of raising awareness
  • Encourage staff to report any leaks
  • Make sure someone is responsible for switching off water heaters before the start of holiday periods
Charges
  • Contact water company to discuss tariffs
  • Charges for sewage are closely related to charges for water supply
  • If processes use a lot of water, lower rates may be appropriate.
Housekeeping
  • Stop leaks and drips
  • Check meters are working properly - (are you being charged too much?)
  • Compare bills with meter readings
  • Compare daily and nightly consumption levels
  • Reduce immersion thermostat settings to 60C (every 10C reduction saves 15% energy)
  • Walk around the premises at night to see if boilers are on
  • Set immersion heaters to switch off an hour before the end of the working day
Washing
  • Investigate reuse of solvents
  • Always use cold water for washing unless hot water is necessary
  • Control and reduce washing
  • Wipe rather than spray
  • Examine potential for reuse of water
Low cost practical measures
  • Install immersion heater timing switches
  • Install electronic urinal flush controllers incorporating passive infra-red presence detectors to trigger flush cycles
  • Consider converting to push button switches
  • Consider fitting flow restrictors to taps
  • Fit spring loaded pistol grips to hose pipes to reduce wasted water
  • Investigate use of spray head taps
  • Consider use of low volume flushes
  • Contact Thames water for 'hippo bags' (water saving device for toilets)


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Energy
Whether it is electricity, gas or alternative sources, energy constitutes a considerable fixed cost to many companies. It is used both for heating and lighting and also to power equipment, from photocopiers to forklifts.

Have you considered....?

  • What types of energy you use?
  • Where it is used and lost?
  • When it is used and lost?
  • How it is used and lost?
  • What investments could be made?
  • How further savings could be made?

Areas to reduce waste and save money

Raise awareness - many staff don't appreciate the cost of electricity and gas or how they can help

Improve housekeeping - improved housekeeping can reduce energy bills by up to 15%

Low cost practical measures - low cost measures can have a significant impact

Heating - costs rise by ~8% for each 1°C of overheating - recommended temperatures are; 19°C for offices, 16°C for workshops and 10°-12°C for stores and warehouses

These action areas and appropriate measures are explored further in the table below

Practical hints and tips

ACTION AREA MEASURE
Raise awareness
  • Encourage all staff to suggest ways to reduce electricity used
  • Educate staff to purchase energy efficient equipment
  • Discuss heating levels with staff including security and cleaning staff
  • Use staff meetings as a means of raising awareness
  • Encourage staff to report areas where energy is wasted
  • Make someone responsible for switching off electrical equipment before the weekends and holiday periods
Housekeeping
  • Consider changing to alternative energy providers
  • Check meter readings against invoices
  • Where possible reduce heating levels
  • Ensure doors are not left open - consider fitting automatic closers
  • Make use of natural light
  • Reduce use of portable electrical appliances
  • Defrost fridges and freezers on a regular basis
  • Check timers are set for the most appropriate times
  • Conduct an out-of-hours audit - see what's been left on
  • Identify equipment which can be switched off when not in use
  • Use off peak electricity to charge batteries
  • Carry out regular checks on thermostat settings
  • Monitor and review the efficiency of electrical equipment
Low cost practical measures
  • Consider installing a 7 day electric time switch to permit different daily settings
  • Consider use of slimline fluorescent tubes and low energy lightbulbs
  • Consider reducing the number of fluorescent tubes in banks of lights
  • Make sure lights and windows are kept clean
  • Consider fitting motion sensors to lights
  • Investigate fitting local light switches
  • Reduce draughts from large open doors through plastic strip curtains, automatic closing doors or partitions
  • Replace old kettles and energy intensive equipment
  • Ensure proper insulation of all boilers and pipework


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Solid waste and packaging

Waste disposal may constitute a significant cost to your business. When you consider the materials that are in the waste, the cost of purchasing the raw material, the cost of treatment, energy and wasted labour, the actual cost may be far greater than that of disposal. This section considers ways to reduce material waste at all stages of production.

Have you considered...?

  • The cost of waste disposal
  • The quantity of waste disposed from all processes
  • Which processes are least efficient/generate most waste
  • How could these be avoided/reduced?
  • Is there opportunity to return or reuse packaging
  • Alternative methods of packaging products

Areas to reduce waste and save money

Raise awareness - it is essential that all staff are aware of the benefits of waste reduction

Improve housekeeping - large savings can be made without any capital investment

Seek opportunities to reduce, reuse or recycle - each of these actions reduces the amount of waste requiring disposal

Understand cost and charging mechanisms - charges may be based on a per lift basis, whether the bin is full or not

These action areas and appropriate measures are explored further in the table below

Practical hints and tips

ACTION AREA MEASURE
Raise awareness
  • Encourage all staff to suggest ways to improve process efficiencies and reduce waste
  • Educate staff on all aspects of waste management
  • Use staff meetings as a means of raising awareness
  • Encourage staff to take environmental issues into account when making purchases
Housekeeping
  • Designate and clearly label a waste compound
  • Produce clear instructions on disposal practices
  • Provide documented procedures for handling waste
  • Seek to establish a regime of continuous improvement
Reduce
  • Investigate potential to make processes more efficient
  • Appropriate capital investment may reduce waste and return cost savings over an acceptable timespan
  • Seek to maximise use of electronic systems and reduce consumption of paper
Re-use
  • Where available make use of waste exchange schemes - your company's waste may be another's raw material
  • Seek opportunities to reuse material
  • Make note pads from scrap paper
  • Provide suitable materials to a local school or scrap store
Recycle
  • Look for information on local recycling companies
  • Consider segregation of waste (certain materials are more easily recycled than others)
  • Consider a joint disposal contract with a neighbouring company with provisions for recycling
  • Consider recycling of toner cartridges, drinks cans and office paper
Costs and charges
  • Understand the basis of calculations for waste disposal charges - i.e. per bin emptied, or per unit weight
  • Arrange frequent invoicing to allow better monitoring
  • Would segregation save money? (some materials cost more to dispose of than others)
  • Investigate the costs and benefits of purchasing a compactor to reduce the volume of waste to be disposed


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Transport

Transport costs form a significant percentage of the expenditure of many companies, whether or not distribution is a core element of the business processes. Significant savings can be made through the introduction of some straightforward low cost measures.

Have you considered...?

  • The annual cost of transportation?
  • The number of miles travelled?
  • Which modes of transport are most efficient?
  • How transport distances can be reduced?
  • How more vehicles can be used more efficiently?
  • Alternatives to road transport?


Areas to reduce waste and save money

Raise awareness -Large gains can be made through appropriate education of staff
Housekeeping - Regular maintenance and good practice can have a large impact
Route planning - Work with customers and suppliers to achieve transport efficiencies
Management issues - High-level policy decisions can have an impact at an operational level

These action areas and appropriate measures are explored further in the table below

Practical hints and tips

ACTION AREA MEASURE
Raise awareness
  • Encourage all staff to suggest ways to reduce distances travelled
  • Educate staff to purchase fuel efficient vehicles
  • Use staff meetings as a means of raising awareness
  • Encourage staff to share lifts to work
  • Train transport staff in fuel efficient driving techniques
  • Encourage drivers to remove roof racks when not required
  • Encourage car sharing
  • Set up a training programme for driver awareness
  • Prepare a league table of efficient drivers and vehicles
Housekeeping
  • Control vehicle washing
  • Set up a schedule for servicing all vehicles
  • Ensure tyres are checked for wear on a monthly basis
  • Ensure that uneven wear is noted and the vehicle tracking is checked - 1 degree increases consumption by 3%
  • Ensure that tyre pressure is checked weekly
  • Monitor fuel consumption
Route planning
  • Plan all routes to minimise costs
  • Consider using a computer based route planning system
  • Check whether delivery arrangements can be modified e.g. to allow bulk deliveries or share deliveries with neighbouring companies
Management issues
  • Reimburse travel costs by paying mileage rates - encourages careful driving techniques
  • Place restrictions on choice of company cars
  • Consider use of alternative fuels
  • Use e-mail/virtual conferencing to avoid unnecessary meetings and save time


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Environmental Management Systems

Building the links between waste minimisation and Environmental Management Systems (EMS) can help companies achieve recognised standards such as ISO 14001. In addition to the environmental improvements, a more formal EMS helps businesses improve overall performance through cost savings, reduced risk, improved compliance and market positioning.

EASY STEPS TO EMS IMPLEMENTATION

Gain Management Commitment

Assign a representative and team
Define roles and responsibilities for environmental management

Identify Environmental Management Issues
Identify input and outputs and legal requirements

Set policies, objectives, targets and programmes for improvement
(This may include specific projects, training, working with suppliers.)

Provide procedures and training to staff in how to manage and minimise environmental impacts.
Monitor and audit performance
Review progress in meeting policy, objectives and targets.


GAIN COMPETITIVE ADVANTAGE
A good standard of environmental management can lead to competitive advantage from effective communication with customers, employees, investors, and neighbours. As more companies adopt EMS, increasing pressure will be applied on suppliers to do the same. Companies incorporating programmes for continuous improvement, as part of an EMS, will push back the boundaries of environmental management and waste minimisation.


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