Presentation on theme: "How to conduct cleaner production assessments?"— Presentation transcript:
1How to conduct cleaner production assessments? Presentation 7Presentation 7: How to Conduct Cleaner Production Assessments?
2About Cleaner Production Assessments Cleaner Production Assessment (CPA) is a core service of a cleaner production centre. CPAs should be conducted in a systematic manner and not on an adhoc basis. A structured, systematic approach is essential for getting the best results and ensures that the outcomes of the CPA are consistent with those identified in the organization's broader planning process.A generic CPA process consists of the following milestones:Planning and OrganizationPre-assessmentAssessmentFeasibility analysisImplementationMonitoring
3Benefits of CPAIdentification , characterization and quantification of waste streams and thus environmental and economic assessments of loss of resources (material and energy).Identification of easy to implement low cost cleaner production options which may be implemented immediately.Preparation of investment proposals to financing institutions that involve high cost cleaner production options of technology or equipment change.In fact, conducting CPAs is an excellent method of building the competence of the staff at the cleaner production centre.
4Generic Process of CPA Sustain cleaner production assessments Planning & organizationSustain cleaner production assessmentsPrepare a cleanerproduction planInvolve employeesImplementation & monitoringOrganize a teamSelect feasible optionsPre- assessmentFeasibility AnalysisConduct a walkthroughScreen optionsAssessmentPrepare an eco-mapGenerate optionsPrepare a preliminary material and energy balanceConduct cause diagnosisPrepare a detailed material and energy balance
5Planning and Organization A CPA can be initiated after a conscious decision has been made by the management to take action. Planning and organization starts once one or a few staff members of an enterprise become interested in cleaner production. This interest is often the result of awareness-raising and training programmes.The elements that are important for the successful start of a CPA are:Obtaining the commitment of the top management of the enterpriseInvolving employees of the enterpriseOrganizing a cleaner production teamIdentifying impediments and solutions to the CPAas a process
6Planning and Organization Signing an MoU with the centreDirecting formation of a cleaner production teamMaking available the required resources andBeing responsive to the results of CPAObtain commitment of top managementInvolve employeesOrganize a cleaner production teamIdentify impediments and solutions to the CPAAll staff (top-down, with shop-floor staff)Across all or limited departmentsFor larger enterprises – core team plus sub teamsFor smaller enterprises – owner plus sub teamGetting the right mix is crucialAttitudesInformationTechnicalFinancial
8Identify Impediments and Solutions to the CPA as a Process BarriersImpediments in obtaining information from some departmentsLack of awareness amongst staffLack of appropriate skills amongst staff
9Deciding the Focus of the CPA Deciding the focus of the CPA involves making decisions concerning:The scope; i.e. whether to include the entire plant or limit it to certain units / departmentsThe emphasis in terms of materials; e.g. water, energy or chemicals
10Pre-Assessment Pre-assessment consists of four important steps: 1. Compiling and preparing the basic information; i.e.Preparing a Process Flow Diagram or PFDPreparing an eco-map using layout maps of the site / unit2. Conducting a walkthrough3. Preparing preliminary material and energy (M&E) balances
11Preparation of Process Flow Diagram (PFD) Compilation and Preparation of Basic InformationPreparation of Process Flow Diagram (PFD)Use block representation to denote operationsWrite the name of the operation, special operating conditions, Show points of inspection or quality control, quantities (if available), use symbolsIndicate batch or continuous operationsUse colour codes to indicate different piping or material flow patternsCapture start up, shut down and maintenance related activities, seasonal variations in production, etc. Best done by preparing a flowchart which indicates how a process or unit operation is operated for a special situation.
13A Flow Chart Indicating a Process Operation in a Wet-textile Processing Unit for Special Situations (i.e. whether bleaching / scouring / dyeing is required)
14Conducting a Walkthrough Walkthroughs are one of the best techniques for getting first-hand information about a production operation within a short span of timeWalkthroughs should not be conducted on holidays, when operations are closed, when production is low, and when equipment is under maintenanceFollow the PFD - Begin from the raw materials receiving area and end at the department of finished productsCover all the support utilities such as boilers, power generators, fuel storage tanks, pump-house, refrigeration plant, raw water treatment plant, wastewater treatment facility, etc.
15Conducting a Walkthrough – Dos and Don’ts Do not find faults – the walkthrough is not a fault finding missionDo not dominate the conversationAsk real and open questions; do not attempt to show your own knowledge of the topic but to get information from the responsible staffAsk questions only when absolutely required. Request explanations if requiredDo not leave the groupConduct a closure meeting to capture findings of the walkthrough
16What to ask in a walkthrough? What to carry with you in a walkthrough? Walkthrough areas…Workfloor or shop floorMachines and OperationsWaste and EmissionsLaborStorage areasUtilitiesAsk questions related to operating practices, housekeeping, equipment maintenance and control, safety and health, waste generation, handling etc.A camera to take photographsA scrap book (A3 size) to make quick sketches, especially for layouts, eco-maps (see next section) and the PFDColor pens or highlighter to mark important pointsA tape recorder to record your site observationsTake with you…..
17Preparation of an Eco-map Eco-mapping is a very useful application for a cleaner production team to useEco-mapping can easily capture observations made during the walkthroughEco-maps visually present issues of concern, and can also note good practicesEco-maps are often the direct indicators of the housekeeping status of the enterpriseColour coding and symbols may be used to show areas that have been monitored or areas where problems will have to be dealt with on a priority basisEco-maps can be made easily by using the layout maps of the site / unit
18Preparation of an Eco-map (continued…) Eco-mapping may be used for specific themes, such as:Water consumptionWastewater dischargeSolid waste generationOdoursNoiseDustSafety risksEnvironmental risks
19Preparation of layout maps Preparation of an Eco-map requires a Layout Map…Preparation of layout mapsKey map: Show the location of the enterprise, access roads, neighbourhoodcharacteristics, and especially sensitive receptorsLayout map of the entire operations in the organization: Show the internal roads, entry and exits, waste storage, processing, disposal facilities, utilities, wastewater outletsLayout map of key departments: Layout maps may be drawn for departments of concern indicating the positions of the major equipment, water piping, steam lines, drains and vents / stacks. Separate layout maps are required for each floor
21An Eco-map for Water for an Electroplating Factory
22Preparing Preliminary Material and Energy Balances A material and energy (M&E) balance is a basic inventory tool, which allows for the quantitative recording of material and energy inputs and outputs.The basis of the material balance is the PFD.An essential step in the M&E balance is to check that "what goes in must come out somewhere."All inputs should thus have related outputs.OutputsRaw materialsEnergyWaterChemicalsEnterpriseor plantInputsWastesAir emissionsEffluentsSolid wasteHeat lossesOff-specification productsBy-productsProducts,Useful by-products
23Understanding Material and Energy Balances Material balances are typically carried out to inventory of material flows (raw materials, chemicals, water, energy etc.) entering and leaving a manufacturing / service company.Energy balances are useful to find options to minimize the use of energy or to recover the energy lost in the system.Preliminary M&E balances are normally set using secondary data, supported by the information recorded during the walkthrough. Water and energy bills paid give some idea of their consumption levels. On the output side, production figures or orders serviced over a certain period of time can give an estimate of average production. Often, approximate calculations will need to be used, based on "typical" values given in the literature.
24Understanding M&E Balances (continued…) Generally, M&E balances at the preliminary level are best set by examining three months data and computing monthly averages.Care should be taken to ensure that all quantification is expressed in the right units (preferably SI units), that they are uniform, and that the associated costs are provided
25AssessmentPreparation of detailed material and energy balancesCause DiagnosisOption GenerationScreening of Options
26Detailed Material and Energy Balances It is probable that the cleaner production team finds substantial discrepancies in the preliminary M&E balance.This may require revising of the data used for inputs and outputs, rediscussion on assumptions behind the numbers or conduct of measurements.Hence, the next task of CPA is for the team to prepare detailed material and energy balances around the PFD.Developing a detailed material balance for each operation is neither practical nor relevant. The critical operations are generally chosen based on the focus of the CPA, the results of the preliminary M&E balance, and the types of materials and processes used (i.e. operations where hazardous materials are used or where materials used are expensive or where materials are used in quantities exceeding the benchmarks).Detailed M&E balances are often performed when the processes have long operational sequences
27A Detailed Material Balance for a Wet-textile Processing Factory An important last step in preparing an M&E balance is assigning costs to the waste streams that have been identified in the balance.This could be the single most important step in convincing the management of an enterprise about the value of cleaner production and securing their commitment for all the further activities.Monetization of waste streams means that they should not only be characterized in classical environmental terms such as BOD, COD, concentration in liquid wastes, etc. The team needs to also characterize the streams in terms of material content, which can then also be monetized.
28A Detailed Material Balance for a Wet-textile Processing Factory While charging costs to waste streams, the team should consider the following cost items –Cost of raw materials / intermediate products / final products lost in the waste streamsCost of energy in waste streams, in terms of the energy consumed to heat or chill them, cost of treatment / handling / disposal of waste streams, including tipping or discharge fees if anyCosts incurred, if any, in protecting the workers and maintaining safe working conditions, the potential costs from a possible accidental spill, discharge, or leakage.Obviously, the high-cost waste streams would be the most interesting ones to focus on from an economic point of view.
29A Detailed Material Balance for a Wet-textile Processing Factory
30A Detailed Energy Balance for a Wet-textile Processing Factory
31Cause Diagnosis through the Fishbone Diagram The cleaner production team now needs to start generating cleaner production options.Possible through conducting a cause diagnosis exerciseThis exercise involves asking the question “why? – why did such a problem / outcome occur?”Essentially an exercise to hypothesize over the root causes of any problem / outcomeCan be conducted easily through the use of a tool called the fishbone diagram
32Cause Diagnosis through the Fishbone Diagram (continued…) Four generic categories:ManMethodMaterialMachineEach generic category has a primary causeEach primary cause has one or more secondary causes
33Fishbone Diagram: Facilitating Cause Diagnosis for low RFT in the Dyeing Process
34Allotting Priorities to Causes Identified in the Fishbone Diagram The causes identified in the fishbone diagram are “theorized” or “probable” causes.Therefore, the extent to which each cause contributes to the problem has to be calculated before any major decisions are taken.The cleaner production team would need to analyze the extent to which each of these probable causes contributes to the principal problem – i.e. Right First Time (RFT) is low.Such analysis is only possible through observations, record keeping, setting up planned and controlled experiments designed to isolate the cause of the problem, and specific tools such as the Pareto Analysis.These efforts will assist the team in validating the primary and secondary causes, and prioritizing cause elimination.
35Allotting Priorities to Causes Identified in the Fishbone Diagram Many cleaner production teams stumble at this juncture, since estimating the relative importance of each probable cause seems a wearisome task.It cannot be stressed too much that teams should be strongly encouraged to push through with this step completely, since it can avoid significant wastage of time (and money) later on in the CPA.
36Cleaner Production Option Generation through Brainstorming Once the points of action and priorities are understood and listed, the cleaner production team should move on to the logical next phase; i.e. option generation.Option generation is a creative process, and is best performed, as in the case of the cause diagnosis, by the team as well as the enterprise personnel.The option generation exercise is conducted through brainstorming, a commonly used tool for generating ideasGiven a particular item which needs to be resolved, the team and the enterprise personnel have to deliberate on the ways and means of obtaining a solution to itThe principle question to be asked during the brainstorming session would be "how - how does one solve this particular problem effectively?"
37Cleaner Production Options - Categories HousekeepingManagement and personnel practicesProcess optimizationRaw material substitutionNew technologyNew product designRecovery of useful byproducts and resourcesOnsite recycling and reuse
38Important Points to Remember During Option Generation The team should always remember that in general it is better to not generate a waste in the first place, rather than generate it and later recycle or recover / reuse it. Therefore, the team should only consider these options once all the others that could prevent waste generation have been examined.Some of the chosen options may require major changes in the processes or equipment or product redesign. Often, these will dramatically reduce waste generation or increase productivity, but they also often imply considerable investments.Certain chosen options would require thorough laboratory / bench scale / pilot studies to ensure that the product quality does not degrade as a result of their application, and that it is acceptable to the market
39Feasibility Analysis Technical evaluation Environmental evaluation Screening of optionsTechnical evaluationMaterials and energy consumptionProduct / byproduct qualityImprovement on Right First Time (RFT)Human resource requirementEase of implementationCross-linkages with other optionsTime for implementationEnvironmental evaluationEntire life cycle of the productOn-site / off-site neighbourhood improvementsReduction in amount of waste / emissionReduction in consumption of natural resourcesReduction in noise / odour / safety risksEconomic evaluationPayback periodNet Present Value (NPV)Profitability Index (PI)Internal Rate of Return (IRR)Sensitivity analysis
40Economic EvaluationConsists of analyses and computations of the evaluation criteria [e.g. pay back period, Net Present Value (NPV), Internal Rate of Return (IRR), etc.] based on project costs and benefitsA simple payback period is evaluated based on the annual savings and the initial investment. Indicates the time period to return the initial investmentPayback Period in years = (Capital Investment/Annual Savings)Should be generally considered only as a ballpark assessment, as it ignores depreciation of the investment made and time value of money. Usually, investment decisions can only be made on the basis of payback period alone if the investment required is low and / or the returns are high so that the payback period is less than two yearsA better approach is to use the concepts of NPV and IRR. These concepts consider the time value of cash inflows and outflows during the useful life of the investment made
41Economic Evaluation (continued…) Economic evaluation therefore requires building information on:Capital costs associated with required investments (if any);Net revenue, which is computed as a difference between total revenue (that is generally higher than the base case) and the operating costs (that are typically lower in the changed scenario); andRates of interest and depreciation to enable computation of the Present ValueFor computation of NPV:CFo = Cash outflow in the first year (capital investment)r = opportunity cost of capital (i.e. for a rate of 10% ‘r’ would be 0.1)n = useful life of the investment in yearsFor an investment to be economically feasible NPV must be greater than zero
42Economic Evaluation (continued…) The PI is computed as the ratio of the present value of the total cash inflows and the present value of the total cash outflowsFor an investment to be economically feasible, the PI must be greater than 1IRR is essentially the rate of return of investment during its life by way of net cash inflows (i.e. inflows – outflows)IRR is to be compared with the rate of interest of the borrowings that may be needed from the marketAlso carry out a sensitivity analysis by varying input and output parameters, costs other indicators so as to get different scenarios – pessimistic and optimistic
43Example of Cash Inflows and Outflows – Replacement of a Winch Machine with a Jet Dyeing Machine Years12345678910CapitalCost(110040)OperatingCosts +Depr.(23520)Savings(54600)Simple Payback = 36 months, NPV = US$ 9141, IRR = 25.5%
44Implementation of Options and Sustaining CPAs Implement feasible cleaner production measuresDraw up and adopt a Cleaner Production (Implementation) Plan; prioritize options depending on the resources available, prepare technical specifications, allocate responsibilities, set up monitoring and review functionsMonitor the cleaner production implementation planSustain Cleaner Production; adopt CPAs as an on- going activity by integrating cleaner production into the enterprise’s management system