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Benchmarking Business Performance Best Practice Examples Omar L. Hassouneh M.Sc. Environmental Engg. Future Environment.

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Presentation on theme: "Benchmarking Business Performance Best Practice Examples Omar L. Hassouneh M.Sc. Environmental Engg. Future Environment."— Presentation transcript:

1 Benchmarking Business Performance Best Practice Examples Omar L. Hassouneh M.Sc. Environmental Engg. Future Environment

2 Objectives What is Environmental Benchmarking? Why is it Important? What is Environmental Benchmarking? Why is it Important? Why to Enhance your Environmental Business Performance? Why to Enhance your Environmental Business Performance? What is an Environmental Performance Indicator? What is an Environmental Performance Indicator? How to Benchmark your Environmental Business Performance? How to Benchmark your Environmental Business Performance? Does it Worth the Effort? Does it Worth the Effort?

3 Where does Jordan Stand? Environment-Related Indices - Prescott-Allen’s Wellbeing Index - Consultative Group on Sustainable Development Indicators (CGSDI) - Redefining Progress Institute (the Ecological Footprint index) - GLTETF/World Economic Forum, Environmental Sustainability Index (ESI)

4 ESI-2002 Sixty Eight (68) parameters within Five (5) components: –Environmental Systems; –Environmental Stresses; –Human Vulnerability; –Social and Institutional Capacity; and –Global Stewardship

5 Finland (1 st ) ESI 73.9 Jordan (53 rd ) ESI 51.7 Total 142 Countries http://www.ciesin.columbia.edu/indicators/ESI

6 Key Common Parameters Significant Positive Correlation with GDP Significant Positive Correlation with GDP Innovative Responses Development Innovative Responses Development Private Sector Responsiveness Private Sector Responsiveness

7 Environment-Related Regulations Examples Law of Protection of the Environment, Law No. 12, 1995; Law of Protection of the Environment, Law No. 12, 1995; Clear Air By Law (Under Development) Clear Air By Law (Under Development) Solid Waste Management By Law (U.D.) Solid Waste Management By Law (U.D.) Water Protection By Law (U.D.) Water Protection By Law (U.D.) Greenhouse Emissions By Law (U.D.) Greenhouse Emissions By Law (U.D.) Regulation for the Limitation of and Precaution from Noise Regulation for the Limitation of and Precaution from Noise

8 Pollutants Ambient Air Quality Standard JS 1140/1996 Pollutants Ambient Air Quality Standard JS 1140/1996 Reclaimed Domestic Waste Water JS 893/2002 Reclaimed Domestic Waste Water JS 893/2002 Industrial Wastewater JS 202/2003 (Under Revision) Industrial Wastewater JS 202/2003 (Under Revision) Pollutants Maximum Allowable Limits of Air Pollutants Emitted from the Stationary Sources JS 1189/1991 Pollutants Maximum Allowable Limits of Air Pollutants Emitted from the Stationary Sources JS 1189/1991 Environment-Related Standards Examples

9 How to Measure your Environmental Performance? Analyze your Process Analyze your Process Determine points of pollutants generation Determine points of pollutants generation Determine Environmental Performance Indicators Determine Environmental Performance Indicators Define normalization factors (relate to production size) Define normalization factors (relate to production size) Determine Pollution Contribution for each of the Processes Determine Pollution Contribution for each of the Processes Find Best Available Technology (BAT) values for EPIs Find Best Available Technology (BAT) values for EPIs Monitor Performance and Analyze Results Monitor Performance and Analyze Results Compare to Competitors Performance Compare to Competitors Performance Continually Improve your Performance Continually Improve your Performance

10 Process Analysis “Determine EPI’s” Compare to Competitors (Benchmark) Implement Monitor and Evaluate Performance Set Targets SMART

11 InputQuantityUnitsPriceUnits Wastewater Quantity/Volumem 3 /yearJD/ton CODmg/l BOD5mg/l TDSmg/l Solid Waste Hazardous Solid Wastetons/yearJD/ton Solid Waste for Landfilltons/yearJD/ton Solid Waste for Recyclingtons/yearJD/ton Production Product Type 1tons/yearJD/ton Product Type 2tons/yearJD/ton Product Type 3tons/yearJD/ton Product Type 4tons/yearJD/ton

12 Data Analysis-Example Process 1Process 2 Total Quantity Quantity%of totalQuantity%of total Water Consumption, m 3 /ton COD, mg/l Energy Electricity, GJ/ton Fuel, GJ/ton Solid Waste Hazardous SW, ton/ton Air Emissions CO 2, ton/ton

13 Performance Evaluation EPI New Value Old Value BATAction Water Cons., m 3 /ton Energy Cons., GJ/ton CO 2 Emission, ton/ton Hazardous SW, ton/ton

14 Economic Value EPI EPI Value, JD EPI Value EPI BAT Potential Savings Water Cons., m 3 /ton COD, mg/l Electricity Cons., kW/ton Fuel Cons., GJ/ton CO 2 Emission, kg/ton NOx Emissions, kg/ton Hazardous SW, ton/ton

15 General Tips and Techniques Water Conservation Water Conservation –Proper production management procedures –Reuse rinsing and cooling water –Use separate streams for chemicals flow (GHK) Water Characterization Water Characterization –Avoid using chemicals wherever possible –Use biodegradable chemicals –Accurately adjust chemicals dosing system

16 Tips and Techniques (Cont.) Energy Conservation Energy Conservation –Segregate cold and hot water streams for heat recovery –Insulate pipes and machinery to minimize heat losses –Monitor machines performance –Optimize tasks scheduling to minimize energy consumption –Consider the use of devices of low energy ration

17 Tips and Techniques (Cont.) Solid Waste Minimization Solid Waste Minimization –Consult your vendor for using biodegradable and/or less volume packaging material –Minimize the use of disposable materials/containers –Segregate hazardous solid waste by special containers –Separate different types of domestic solid waste

18 Case 1: Chemicals Industry Large amounts of particulates emission. Exceeding the thresholds of JS 1140/1996. Large amounts of particulates emission. Exceeding the thresholds of JS 1140/1996.

19 Problem Analysis Company’s Capital Investment: JDM1.5 Company’s Capital Investment: JDM1.5 Problem: Large amounts of particulates emission. Exceeding standards thresholds of air emissions (JS 1140/1996). Problem: Large amounts of particulates emission. Exceeding standards thresholds of air emissions (JS 1140/1996). Investigation: Measure particulates (PM 10 ) concentration in different units to determine contribution of each unit. Investigation: Measure particulates (PM 10 ) concentration in different units to determine contribution of each unit. Result: Powder detergent filling unit produces 45% of total particulates emissions. Result: Powder detergent filling unit produces 45% of total particulates emissions.

20 Solution Isolate Powder Filling Unit and install bag filters at unit ventilation points. Isolate Powder Filling Unit and install bag filters at unit ventilation points. Install vacuum feeding machine to feed the filling machine directly from the mixer. Install vacuum feeding machine to feed the filling machine directly from the mixer. Contact vendor to provide raw material in barrels instead of bags. Contact vendor to provide raw material in barrels instead of bags. Set a preventive maintenance program to ensure filling machine efficiency. Set a preventive maintenance program to ensure filling machine efficiency.

21 Results A total investment of US$70,000 was required to install air filtration system. A total investment of US$70,000 was required to install air filtration system. Actual investment of US$8,000. Actual investment of US$8,000. Reduced particulates emissions by 70%. Reduced particulates emissions by 70%. Improved the powder detergents unit performance by 5% (wasted raw material) Improved the powder detergents unit performance by 5% (wasted raw material)

22 Case 2: Gas Industry-Energy Conservation A monthly electricity bill that exceeds JD10,000 (20% of the plant operating cost). A monthly electricity bill that exceeds JD10,000 (20% of the plant operating cost).

23 Problem Analysis Company’s Capital Investment: JDM 0.5 Company’s Capital Investment: JDM 0.5 Year of establishment: 1976 Year of establishment: 1976 Problem: High electrical energy consumption (≈JD10,000) forming 20% of the plant operating expenses. Problem: High electrical energy consumption (≈JD10,000) forming 20% of the plant operating expenses. Investigation: Investigation: –Review the design of the available equipment to ensure no over-sizing. –Deliver an energy audit to measure the power performance of available equipment. –Determine the high electricity consuming equipment/facilities and propose modifications.

24 Findings and Solutions Air compressors and refrigeration system are the major energy consuming facilities. Air compressors and refrigeration system are the major energy consuming facilities. Monitored the performance of these equipment and determined their power factors. Monitored the performance of these equipment and determined their power factors. Set procedures for the operation of the equipment away from the Maximum Demand Period (reduced penalties). Set procedures for the operation of the equipment away from the Maximum Demand Period (reduced penalties). Used low power ration equipment. Used low power ration equipment. Set a system for plant GHK and internal management. Set a system for plant GHK and internal management.

25 Results Minor investment required (≈JD6,000) Minor investment required (≈JD6,000) First three months bill: JD6,800-JD7,900 (no major change to plant productivity) First three months bill: JD6,800-JD7,900 (no major change to plant productivity)

26 Economic Value-Example “Best Management Practices for Pollution Prevention in the Textile Industry” EPA, 1996.

27 Economic Value-Example (Cont.) Process Description Bath Ration Water Use, gal/lb % Change from Standard Water saving gal/lb (wool washing) Standard 3-Step drop/fill 1:81.62------ Three Step drop/fill, Reuse bath 2 1:81.19-26.5(0.265*34.1)9.04 Three Step Reuse baths 2 and 3 1:80.75-53.7(0.537*34.1)18.31

28 Economic Value-Example (Cont.) Fabric Flow Water Flow Raw Water Estimated Investment: US$50,000 Annual Estimated Savings: US$95,000/yr (Production dependent)


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