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OPERATIONS HOLDS THE KEY TO SOLID WASTE SYSTEMS IMPROVEMENT

Presented:November 10, 2015

1©2015NealBolton

•  Sarahisourorganizer

•  We’lldoQ&Aduringthewebinar

Welcome

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Presentedby:NealBolton,P.E.

Neal has more than 38 years experience in the solid waste and heavy construction industry.

He and the team at Blue Ridge Services have evaluated MSW operations in the United States, Canada and abroad.

Contact Neal at: neal@blueridgeservices.com

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PollQues<on-1Doyouhaveenoughmoneytofundclosure,recycling,newequipmentandotherthingsonyourTo-DoList?

1.  Yes,definitely

2.  Mostthingscanbefunded3.  Mostthingscannotbefunded

4.  No,definitelynot

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Fordecades,wastetonnageincreased.LandfillsgenerallymadegoodmoneyandnetrevenueoEenhit40%orhigher.

OldTimes…

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ThefinancialmodelofPay-As-You-Throwworkedatmostlandfills.Tippingfeesgeneratedthemoneythatmadethesystemwork.

TheOldFinancialModel

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Somelow-intensityrecyclingwasgoingon,butmostlyitwasbasedonavoluntarysystem.

LiPlemoneywasrequired.

PassiveRecyclingOccurred

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Then,thelate1980’srecyclingbegantakinghold.ManyStatesandmunicipaliUesmandatedaminimumlevelofrecycling.

AccordingtoEPAstaUsUcs,recyclingincreased510%between1985and2010

RecyclingTakesHold

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Recyclingbegananupwardtrend.Thisimpactedlandfillrevenue…becauseitwasbasedondisposalfees.

NewTimes…

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Thoseofusinthebusiness,knewthatrecyclingoEencostsmoney.Notalways…butoEen.Itmustbesubsidized.

Thehigherthegoals,thehigherthecost.

RecyclingCostsMoney

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1.  ItwasnotpoliUcallycorrecttosaythatrecyclingcostsmoney.Nobodywantedtohearthebadnews.

2.  Soweincreasedrecycling…whatwastheimpact?

3.  Moresubsidiesforrecycling…and4.  Reduceddisposalrevenue

Emperor’sNewClothes

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•  Adownwardspiraloccurred•  Lesswaste(duetorecycling)reducedUppingfeerevenue

•  Wetookfromthosereduceddisposalfees…andfundedevenmorerecycling.

•  Huh?

ADangerousTrend

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Therecessionof2008sentmanylandfillsintofreefall.Today,wearebeginningtoacknowledgethatthefinancialsystem–theonebasedsolelyondisposalfees–isbroken

RecessionwasFinalBlow

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•  LandfilloperaUonsistheproblem.

•  LandfillsoEencannotfundalloftheirinternaloperaUons…letaloneoutsidetaskssuchasrecyclingandcomposUng.

Opera<onsistheProblem

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AccordingtoSWANA’sMOLOtext,63%ofalandfill’scostcanbeaPributetooperaUons.That’sthebadnews.

Yes,mostofthemoneyyouspendgoestooperaUons

TheBadNews…

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TherearealwayshiddenresourcesinsideanyoperaUon.IftheycanbeidenUfiedandeliminated,thoserecoveredresourcescanbere-directedtootherpartsofthewastesystem…suchasclosureorrecycling.

Opera<onsistheSolu<on

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IfyougetoperaUonsdialedin,youcantakeabiteoutof63%ofyourlandfill’scosts.That’stheGoodNews.

TheGoodNews…

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•  It’snotlikely.Disposalfeeswillnotbeabletofundthefutureofsolidwaste

•  Outsidemoneywillberequired

•  Wherewillitcomefrom?

WillDisposalFeesIncrease?

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It’slikelythatmoreandmorerecyclingprogramswillbefundedbyuserfees.Itwillcosttorecycle…justlikeitcoststodispose.

RecyclingWillFundItself

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MoneywillalsocomefromthoserecoveredresourcesinoperaUons.HowmuchcancomefromoperaUons?Plenty.OnelandfilloperaUongained$3millionperyear…$50millionintotaladdiUonalrevenue.

MoneyComesfromOpera<ons

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NeedtoAnalyzetheProcessInordertoidenUfythesetypesofproblems,weneedtocarefully–andingreatdetail–analyzeeveryprocess.Wecallthisa…

®

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Whatisa?It’sanacronymwecoined:

®

®

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PollQues<on-2• Whatpartofyouropera<onhaveyouevaluatedindetail…lookingforwastedresources?1.  Havenotdonethis

2.  Havelookedatsomeisolatedtasks3.  Havelookedatmostoftheopera<on

4.  Haveevaluatedtheen<reopera<on

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WhatDoesitDo?•  EvaluatesoperaUonalperformance,

MeasurescurrentcondiUons(theprocess…nottheperson)

•  UsesvariousProcessImprovementTools

•  ImplementaUon/Training

•  Benchmarksforongoingprocessimprovement

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WhatIsProcessImprovement?•  The intentional, systematic practice of evaluating

and improving an operation…

o  …to increase efficiency

o  …to decrease costs

o  …to improve safety

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WhatIsThis?

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A Japanese term for: Continuous Improvement

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Con<nuousImprovement

•  Wastetonnage•  Mechanichours•  Fuel•  Soilusage•  Laborhours•  Typeofwaste•  No.ofmachines•  Diversionrate

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Process-ImprovementTools•  Leanor…LeanManufacturing•  SixSigma•  Time–MoUonStudies•  AcUvitySampling•  VideoAnalysis•  Time-LapseFilming•  ValueStreamMapping …applyingnumberstotheRealWorld

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Numbers•  Usingtheseprocess-improvementtools,weputnumberstotheoperaUon

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Op<mumCellGeometryDifferen<alEqua<ontoop<mizedailycellgeometry:

–  MachineCost

–  ADCCost–  AirspaceValue–  PushingCost–  …ManyOtherfactors

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LEAN•  Producevaluewithminimalwork(nowastedeffort)

• Workingsmarter…notharder

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ASandwichFactory?

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SixSigma

•  Aprocess-improvementmethodthatfocusesonreducingerrorinasystem

•  DevelopedbyMotorola•  PopularizedbyJackWelch–GeneralElectric

•  DMAIC

SixSigma

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WhatisaSigma•  1sigmaisaStandardDeviaUon

•  Halfwaybetweenmeanandlimit

1Sigma

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VariabilityindicatesError

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ErrorsCauseVariability

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DMAIC(SixSigma)

Define

Measure

Analyze

Improve

Control

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TimeMo<onStudy•  BasedonTime…andMoUon•  Howlongdoesittaketodosomething?

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Time-Mo<on

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HowManyDozers?

DozerPush

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DozerReturn

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DozerPush+Return

•  Thedozer’stotalcycleUmeis58s.

•  So,thedozercanmake62pushesperworkinghour.

•  Usingthatsameaverageof5tons/load,thedozercanprocess310tonsperworkinghour.

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HowManyDozers?

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AnotherExample•  HereisanexamplethatappliestotransferstaUons.

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Hour-by-HourInventory

MassDiagram

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Compares:

•  Whatwewanttodo(idealstate)to…

•  Whatweareactuallydoing(currentstate)

Consider

•  GrindingWoodWaste

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GrindingWoodWaste•  Pushwoodintostockpile•  Removetrash•  Pickupandgrind•  Movegroundmaterialbacktostockpile

•  Pullfromstockpile•  Putintotrommel•  Removedscreenedmat’ltostockpile

•  andthebeatgoeson…

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PollQues<on-3Howmany<mesdoyoutouchwood/greenwaste?

1.  Lessthan5<mes2.  6-8<mes

3.  9-12<mes4.  13<mesormore

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Pointis…(yes,thereisapoint)•  ThereisalotofmoneyhiddeninoperaUons.

•  Ifyoucanextractit,youcanre-directittootherthings…putitwhereitwilldothemostgood.

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HiddenFactories•  Intermsofprocessimprovement,ahiddenfactoryissomeinefficientacUvity…hiddeninsidethemainacUvity

•  …let’slookatanexample

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CellPhoneFactory•  Thegoalistomanufacturephones

– Joeputscircuitboardinphonecase– Fredsolders2wirestocircuitboard– MikeinsertsandconnectsbaPery– MaryaPachesbaPerycover

– Jiminspects/testsphone– Somephonesdon’tpasstesUng

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Failuresgobacktotheline•  Somefailedphonesgoto:

– Fred…tore-solder– Mike…tore-connectthebaPery

•  Thesearehiddenfactories

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DoYouHaveHiddenFactories?

•  YeahBaby!…butyoumaynotknowaboutit.

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O Thereis$260,000/yearinpoten<alsavingshere.Doyouseeit?

HiddenFactory•  SpoPerrandomlydirectstrucks.

•  Sheetrock,plaster,stucco,shinglesandbrushinwrongplace.

•  Dozertakessoilintocell.

•  5Art-Truckloadstoreplacesoil(100cy).

•  At$10/cy…that’s$1,000/day…airspace.

Hereiswhathappens

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O Save$1,000/day…5days/week…$260,000/year

O Howmuchsavingsisatyourfacility?

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•  Place“hard-to-gather”loadsnearcell.

•  Placesweeperloadsbehindthem.

Place"Sweeper"Loads

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Resultsof•  2,700tpdLFsaves$3million/year

•  generatedaddiUonal$50millionrevenue•  IncreasedAUFfrom.55t/yd3to.80t/yd3

•  130tpdLFsaves$5.3million(NPV)•  Reducedsoilfrom50%to20%

•  1,000tpdTSincreasesthroughputto2,000+tpd

•  400tpdMRFre-directs“pickline”efforttoreducecostsandincreasediversion

®

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DesignCoverRaUo6:1…ActualCoverRaGo1:1

Recommenda<on:↓MachineHours↑ADC

7tpdLandfill

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900tpdLandfill•  AEerimplementaUon:

– Soilusagereducedfrom46%…to10%

– Checkfor$886,000forunusedmachines

– MonthlyFuelsavings:$20,000

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2,700tpdLandfill•  2,800tpd

MunicipalLandfill…AUFincreasesfrom1,150pcy…to1,400pcy

•  Reducedfrom5dozersatTippingpad…to2

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4,500tpdLandfillEquipmentUUlizaUonshows“TooManyMachines”

•  4ArUculatedTrucks…doingtheworkof1/3

•  4Scrapers…doingtheworkof1

8%

19%

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SummaryQues<ons

or

Comments?

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Thank You For Attending!

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