PERATIONS OLDS THE KEY Welcome · DMAIC (Six Sigma) Deﬁne Measure Analyze Improve Control ©2015...

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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: [email protected]

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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


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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PERATIONS OLDS THE KEY Welcome · DMAIC (Six Sigma) Deﬁne Measure Analyze Improve Control ©2015...

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