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© PREMAnet e.V. PREMA - Profitable Environmental Management.

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Presentation on theme: "© PREMAnet e.V. PREMA - Profitable Environmental Management."— Presentation transcript:

1 © PREMAnet e.V. PREMA - Profitable Environmental Management

2 © PREMAnet e.V. Introduction or: Lessons learned Over 30 Years of „saving the environment“ tells us that the topic „Environment“ should not handled isolated and theoretical

3 © PREMAnet e.V. Introduction or: Lessons learned Over 30 Years of „saving the environment“ tells us that the topic „Environment“ should not handled isolated combined and butand theoretical practical

4 © PREMAnet e.V. developed by : GIZ - Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH - German International Cooperation - PREMA Profitable Environmental Management financed by: BMZ - German Ministry for Economic Cooperation and Development implemented by: PREMAnet - Association of licensed trainers

5 © PREMAnet e.V. Centralamerica: Mexico, Costa Rica, El Salvador, Jamaica, Cuba, Guatemala, Nicaragua Africa/ Middle East: Zimbabwe, Zambia, Republic South Africa, Kenya, Nigeria, Algeria, Tunisia, Morocco, Ghana, Jordan, Egypt Latin America: Brazil, Bolivia, Chile, Ecuador, Peru, Venezuela, Uruguay Asia: Philippines, Indonesia, China, Vietnam, Thailand, India, Sri Lanka Europe: Germany, Rumania, Montenegro, Croatia, Bulgaria, Macedonia Countries where PREMA has been implemented in total: > 40 countries

6 © PREMAnet e.V. Economic efficiency Organisational Learning Environmental performance Cost savings and increase in productivity Less waste, air emissions and effluents Enhanced capacity to implement changes PREMA means a triple win for companies PREMA = triple win

7 © PREMAnet e.V. generation of NPO disposal of NPO Raw material Energy Water InputProcess Output desired final product Non-product output (NPO) Total NPO-costs Input-costs of NPO + Processing- Costs of NPO + Disposal- Costs of NPO = 10-30% of total cost of production NPO = all material, energy and water which is used in the production process but does not end up in the final product. NPO = all material, energy and water which is used in the production process but does not end up in the final product. Non-Product Output (NPO)

8 © PREMAnet e.V. Examples for Non-Product Outputs (NPO) Raw materials not up to requested quality standards Auxiliaries Rejects/ defects and costs for reprocessing Wastes (solid, liquid, toxic, non-toxic) (Waste) water Energy Emissions (including noise and odours) Losses in stock (due to storage conditions) Losses during manipulation and transportation (intern, extern) Packaging materials (with little exceptions) Client reclamation and client retours Losses due to insufficient maintenance Losses due to accidents Virtual NPO (opportunity costs = missed production) Production capacities used for reprocessing Machinery standstill times

9 © PREMAnet e.V. Model NPO Flow Chart Additional inputs are shown on the left (in blue) water energy m³ auxiliaries kg kWh water m³ energy kWh auxiliaries kg Non-Product Output (NPO) is shown on the right (in red) kg waste water …..m³ atmospheric….m³/kg emissions waste energy …kWh solid waste kg waste water …… m³ atmospheric... m³/kg emissions waste energy.....kWh solid waste.... kg The main input appears on the top (in blue) Raw Material The final product is shown at the bottom of the process (in green) Final Product Intermediate Product 2 etc. Production step 1 Production step 2 Production step kg waste water m³ atmospheric.....m³/kg emissions waste energy......kWh solid water m³ energy kWh auxiliaries kg Intermediate Product 1

10 © PREMAnet e.V. Flow analysis Analysis of costs / environmental impact Analysis of Causes Development of measures Implementation of measures Integration in company structure PREMA Cycle of Implementation 1

11 © PREMAnet e.V. company visits by trainers What are the elements of a PREMA programme? PREMA is a 6 to 8-month programme for innovation teams from medium-sized companies. Good Housekeeping (GHK) company visits by trainers Evaluation & Integration Implementation of measures ~8 weeks Cost Management (EoCM 1) ~8 weeks Analysis and first measures Development of measures ~8 weeks Cost Management (EoCM 2) company visits by trainers Network meeting

12 © PREMAnet e.V. Economic savings Economic savings Annual net savings: approx. 2.5 Mio. € Additional costs: 250,000 € Procedure in the company Metal industry China - Substitution of raw materials achieves significant savings Environmental impacts Environmental impacts Acid wastewater discharges are reduced by approx. 30% Organisational development Organisational development Establishment of an internal PREMA team Stimulation of PREMA- oriented re-assessment of additional processes From low quality raw materials… high quality steel The problem: Low quality raw materials required three additional preprocessing steps, which lead to high rejects rate, energy losses and wastewater discharges The measures: NPO calculation helped the company to realize that it is better to pay higher for better quality raw materials than to pay more for the three pre- processing stages

13 © PREMAnet e.V. Economic benefit investment costs: 1,000 € for the extension of the storage room annual saving: 15,000-30,000 € through the reduction of raw material costs by 4-5% payback period: < 1 month Procedure in the Company The problem: Cut according to customer requirements Achieved environmental benefit reduction of timber waste by 4-5% reduced resource (wood) use Organisational improvements Increased awareness of the significance of the raw material wood and its costs among the staff High amount of waste, since the timber cannot be optimally cut. The measure: Production of various pre-defined cut sizes for standard parts (steps and banister bars), which are stored in clear arrangement Optimised use of timber Carpentry Germany - Reorganisation of product range offered

14 Food manufacturer China – Temperature control for full production during all seasons Economic benefits Investment costs: 113,636 € Annual net savings: € (during the 1st winter = 0,5 year) Payback period: app. 17 months Environmental benefits Decreased energy losses Less air pollution per amount of product Organisational benefits Improvement of overall manage- ment capability and of professional level throughout the company Action taken within the company Occupational Health & Safety Improvements Improvement of health standards in order to comply with HACCP requirements The Problem and its Causes High energy losses due to lack of insulation Unreliable system for temperature control made use of main production unit during summer or winter impossible The Idea Thermal isolation of all operating parts and of the factory building Refurbishment of the production unit, installation of effective tem- perature control

15 Food manufacturer China – Reduction of solid waste through incentive system Economic benefits Investment costs: None Annual net savings: 972 € (if loss is reduced from 3 % to 2 %) Payback period: immediate Environmental benefits Reduction of solid waste (broken bottles) Organisational benefits Enhanced responsibility of the work unit and better self- management Action taken within the company The ProblemThe Idea 3 % of bottles broken during filling process 2 % or more losses2 % or less bottles broken costs additional costs, if more than 2 % benefit whole company absorbs costs Filling unit absorbs additional costs 50 % filling unit staff 50 % company Application of a new policy 2 % loss of glass bottles accepted by standard

16 Chemical manufacturer China - Recycling of water for steam production (closed circuit) Economic benefits Investment costs: 477 € Annual saving: 7,070 € Payback period: 0.8 months Environmental benefits Less water consumption Organisational benefits Staff learned to manage water in a closed circuit The Problem and its Causes The Idea 15 % of the water used for steam production was directly released as waste water into the water- treatment plant Installation of a closed water circuit by rehabilitating existing tubes and pumps The new system of water re-cycling Action taken within the company

17 17 © PREMAnet e.V. Tianjin PREMA ® implementation in China Hangzhou Guiyang Changzhou/Yangzhou

18 18 © PREMAnet e.V. Results achieved through PREMA ® in China 11 training programs implemented in 5 cities local partners:Environmental agencies, Productivity Promotion Centres, Consulting firms 64 enterprises: with about ,300 employees implemented measures: 840 investments: 57.7 Mio. CNY ≈ 5.77 Mio. € net economies per year: Mio. CNY ≈ Mio. € average payback period: 5.2 months

19 19 © PREMAnet e.V. Realised economies Potential economies in Chinese enterprises through PREMA Energy WaterSteal * billion

20 © PREMAnet e.V. Type of measure: Which results could be achieved with PREMA ® ? Analysed Case Studies: 296 from 22 countries and 53 sectors

21 © PREMAnet e.V. Investment costs (US $) Which results could be achieved with PREMA ® ? Analysed Case Studies: 296 from 22 countries and 53 sectors

22 © PREMAnet e.V. Payback period Analysed Case Studies: 296 from 22 countries and 53 sectors Which results could be achieved with PREMA ® ?

23 © PREMAnet e.V. Environmental benefits (n = 348 effects) Which results could be achieved with PREMA ® ?

24 © PREMAnet e.V. Instruments belonging to the ‘ PREMA family’ Good Housekeeping (GHK) (with different check lists: ….) Environmental oriented Cost Management (EoCM) PREMAplus Sustainable Management of industrial Areas (SMIA) Profitable Social Management (PSM) Chemical Management (CM)

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