Savings from waste minimisation in furniture manufacturing

GG

290

This Guideincludes aseparate SeniorManagementSummary

This Good Practice Guide was produced by

Envirowise

Prepared with assistance from:

Entec UK LimitedBFM Limited

Savings from waste minimisationin furniture manufacturing

Summary

Wasteful processes are not efficient processes - and the UK furniture manufacturingindustry generates a wide variety of waste material.

Reducing the amount of waste is a low-cost path to improved profits that will also helpcompanies to improve their environmental credentials.

Much of the waste from furniture manufacturing is disposed of to landfill. The cost of thisdisposal route is rising, causing manufacturers to re-examine their process waste to see if it canbe reduced. To save the most money from waste reduction, waste must be prevented fromoccurring in the first place. This Good Practice Guide takes furniture manufacturers step by stepthrough ways to look again at their processes and identify where waste - and costs - can bereduced.

Manufacturers that take action to reduce waste will benefit from:

■ improved production efficiency;

■ savings in time and money from reduced loss of valuable materials and product;

■ value gained from wastes;

■ reduced disposal costs.

This Good Practice Guide will also help furniture manufacturers facing competition from abroadby improving their overall efficiency and performance.

The Guide describes the main areas where waste is generated within the industry and introducesmethods and techniques for its minimisation in each one.

The Guide follows a systematic approach to the implementation of a full waste minimisationprogramme, offering guidance on how to implement a strategy from the start, and on specificwaste minimisation practices.

The Industry Examples at the end of this Guide show what can be achieved through such asystematic approach to waste minimisation.

Contents

Section Page

How to use this Guide and accompanying summary

1 How to reduce waste in the furniture industry 1

1.1 How much is waste really costing? 1

2 Saving money through reducing waste 7

2.1 Clean design 7

2.2 Purchasing 8

2.3 Materials storage and handling 10

2.4 Materials processing and coating 12

2.5 Product assembly, packaging and returns 14

2.6 Manufacturing support 15

3 Alternatives to disposal 18

3.1 On-site re-use and recovery 18

3.2 Off-site re-use and recovery 20

3.3 Waste to energy 21

4 Maintaining momentum 22

4.1 Setting targets and reporting progress 22

4.2 Environmental awareness training 22

4.3 Environmental management systems 22

5 Take action 24

5.1 Useful contacts 25

Appendices 26

Appendix 1 Waste opportunity checklist 26

Appendix 2 Waste review table 28

Appendix 3 Industry Examples 29

See accompanyingsummary EN290

Why reduce waste?

Find out how much waste is generated across the industry as awhole. Look at the driving forces for waste reduction and seehow much other companies have saved through efficient wastemanagement.

See accompanyingsummary EN290

Waste in the furniture industry

There are several common process steps for furnituremanufacturers. This means that there are key areas of wastegeneration. This part introduces the main areas of waste arisingsalong with typical wastage rates.

How to reduce waste in the furniture industry

There are different methods for starting a waste minimisationprogramme and useful tools for identifying and monitoring waste streams are given in this Section.

Maintaining momentum

Find out how to maintain the impetus of a waste minimisationprogramme through continued monitoring and comprehensiveenvironmental management.

Alternatives to disposal

Once you have considered minimising waste at source, consideropportunities for re-using and recovering materials, both on-siteand off-site.

Take action

This provides a summary chart for implementing and continuingyour waste minimisation programme.

Saving money through reducing waste

The greatest savings are made by minimising waste generation atsource. By looking at the various stages of the manufacturingprocess, from the delivery of raw materials to the dispatch offinished products, opportunities for reducing waste are identified.Industry Examples illustrate where success in minimising wasteand realising savings has been achieved.

Section 1

Section 2

Section 3

Section 4

Section 5

Fig 1 How to use this Guide and accompanying summary

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How to reduce waste in thefurniture industry

This Good Practice Guide will help furniture manufacturers to reduce waste by takingthem step by step through ways to look at their processes and identify where waste -and costs - can be reduced.

Industry Examples throughout the Guide demonstrate how UK furniture manufacturers arealready saving money through waste minimisation programmes, and how the advice containedin this Guide is being applied in industry. At the back of the Guide are three in-depth IndustryExamples, showing the extent of savings achieved mostly through simple, low-cost measures.

The Guide is aimed at helping production managers to reduce production waste and improveprofits. It describes the main areas of waste within the furniture industry and introduces practicalmethods and techniques for minimising them. These techniques will improve process efficiencyand allow cost savings to be made by minimising the amount of waste sent to landfill.

Accompanying this Guide is a Senior Management Summary (EN290) which containsinformation explaining why companies should reduce waste.

In UK businesses, the cost of waste is typically 4% of turnover - in some companies it can be ashigh as 10%. Implementing waste reduction measures as part of a waste minimisationprogramme can reduce these costs by a quarter whatever the size of the company.

The furniture manufacturing sector has significant scope for reducing waste. Savings of 1% ofturnover can be readily achieved with little or no investment cost. Across the industry as a whole,this could result in savings of some £60 million/year.

If you need help in convincing senior management to give you the time and resources to begina waste minimisation programme, the accompanying summary will help you.

1.1 How much is waste really costing?

This Section will:

■ help you to identify waste streams systematically through process mapping;

■ help you to calculate the true cost of waste.

Essential to the success of a waste minimisation plan is to be able to demonstrate achievements.The Guide takes a systematic approach to waste minimisation - this means planning beforetaking action, then monitoring and communicating results.

You can also contact the Environment and Energy Helpline on 0800 585794 for freeadvice on any aspect of waste minimisation.

The Helpline is the gateway to Envirowise, a Government programme dedicated tohelping improve the competitiveness of UK industry through reducing costs and waste.

Other publications from Envirowise that will help you with your waste minimisationprogramme are highlighted where appropriate. All are available free of chargethrough the Helpline.

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You will probably not have the time or the resources to work on all of your waste issues at once,therefore, you need to set priorities. Recording your results and demonstrating achievements willhelp commitment to the programme and ensure that it maintains momentum (see Section 4).

The accompanying summary (EN290) describes briefly how you need to set up a wasteminimisation team. More information can be found in Good Practice Guide (GG27) Saving MoneyThrough Waste Minimisation: Teams and Champions. Once such a team is in place, committed toreducing waste and saving money, some time is required for research into which wasteminimisation project should take priority. This is the first step in reducing waste and saving money.

■ Which processes are producing the most waste?

■ Which is the most expensive waste produced or to dispose of?

■ Which waste could be most easily reduced?

By identifying waste volumes and costs you will be in a position to prioritise waste streams foraction.

The principles underlying good waste minimisation practice are based upon the waste hierarchy(Fig 2). This is the order of preference for reducing waste based on the fact that prevention isbetter than cure. The higher up the hierarchy that action is taken over waste, the greater the costsavings. The waste minimisation techniques detailed in Section 2 are based on these principles.

1.1.1 Stage 1: Identify waste

A wide variety of waste types are produced by furniture manufacturing processes and to becomefully aware of the amount and types of waste generated from any process, it is necessary to lookat all inputs and outputs. Some examples of waste found in a typical furniture manufacturingsite are given here.

■ Conversion. The initial cutting of raw materials can generate large volumes of waste.Wastes as high as 60% of timber, 25% of board and 35% of foam and fabric have beenobserved.

■ Secondary machining. This typically results in a further loss of 5% through off-cuts.

■ Spraying and coating. Poor transfer efficiency is one of the main areas of waste generationin wood coating operations. Process Guidance Note Wood Coating Processes (PG 6/33)covers processes included in the Environmental Protection Act 1990 and requires a transferefficiency of at least 65%.

1 2 34 5

WASTEONLY

EliminateReduce

Re-use

RecycleDisposal

Product

Material

Fig 2 The waste hierarchy

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■ Product assembly. It is common practice to produce an extra 2% or more of each woodencomponent batch to account for damage during assembly. Some components, such as metalor plastic frames, are often bought in, so their on-site use involves assembly only and suchbatch over-production does not occur. Prior to packaging, a product may go through theadditional stages of cleaning and quality checks, both of which can produce waste. Cleaningfluids, such as solvents, may be completely lost as waste while quality checks can result inpartial or total scrapping of out of specification products.

■ Packaging and returns. Two to five per cent of packaging is typically discarded as wastematerial during the packaging process. Damage during transit, delivery and storage is asubstantial problem throughout the furniture manufacturing industry and return rates willoften range between 5 - 15%.

To begin with, identify the sources of waste. These may be well known and documented, but itis a good starting point to draw up a ‘waste map’, showing where and how waste occurs.Initially, this can be done on a site basis to identify the areas of greatest waste production.

Where detailed measurements of waste quantities are not known, estimate volumes of wasteusing basic measurements such as skips or bins. By doing this over a specific timeframe, thoseprocesses generating the most waste will be identified.

Once you have identified the various process steps and pinpointed initial areas of waste arisingsand types, more accurate data can be obtained by considering each process step in more detail.Process mapping is a technique for systematically achieving this by detailing the movement ofraw materials through the various process steps and identifying all inputs and outputs.

Ensure a consistent approach to identifying wastes in each process by using a waste opportunitychecklist. This is a list of all wastes that could be generated and will help to prevent any materialsfrom being overlooked. A sample list of waste materials is included for your use in Appendix 1.

Use brainstorming sessions with the waste minimisation team to develop your own wasteopportunity checklist and to identify all process inputs and outputs. An example of a processmap for the initial conversion of raw materials in a six-stage office furniture manufacturingprocess is given in Fig 3 overleaf. This also shows the common areas within the industry thatgenerate waste, along with typical waste rates. You can use these figures to identify where yourwaste rates are higher than the industry average. These could be areas from where you will findsavings easiest to make.

Publication (ET219) Waste Mapping provides a systematic approach to the identificationof wastes and how to calculate the true cost.

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1.1.2 Stage 2: Calculating the cost of waste

The direct cost of waste disposal will be relatively easy to obtain from your waste disposalcontractor, but this will not be the true cost of waste. Calculation of the true cost is a goodway of justifying investment in time spent on waste minimisation issues and for gaining thesupport of management. This is illustrated opposite for the fictitious company, TimberwiseFurniture Ltd.

Assembly

Woodcoating

Secondarymachining

Timber/boardFrames

Cutfabric/foam

Raw materials(Inputs)

ProcessWastes produced

- typical waste(Outputs)

Dispatch

Packaging

ConversionGoods inTimber/board

Fabric/foam

Electricity

Direct/indirect labour

Preventive maintenance

Rework

Timber: 35%

Board: 8 - 10%

Fabric/foam:20 - 25%

Wood coatings:55 - 60%

2% of allcomponents

Packaging: 2 - 5%

RejectsRework

Return rate:5 - 15%

Stain

Sealer

Lacquer

Plastic

Cardboard

Labour

Fittings

(metal

plastic)

Labour Qualitycontrol

Timber: 5%

Board: 2%

Fig 3 Process mapping and identifying waste arisings of furnituremanufacturing processes

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The true cost of waste will include the materials and resources (eg fabric, wood, energy, water)that are supplied to your business, as well as the waste streams generated. To assist you incalculating your own waste costs, try to establish the following:

■ purchasing costs - the cost of the raw materials;

■ production costs - the cost of manufacturing a product;

■ disposal costs - obtain from waste disposal contractors.

Remember that the cost of 1 tonne of wood waste is not just the cost of sending it to landfill.A tonne of potentially useful raw material is also discarded and there will be machining andlabour costs to produce it. A useful tool that can be used to obtain the true cost of waste iscalculation of the value added to the product at each process step.

Fig 4 overleaf demonstrates how to calculate the value added and shows that the further downthe process line, the more costly the waste becomes. The raw material entering each processbecomes more valuable - and a more costly waste.

Timberwise Furniture Ltd is a manufacturer of domestic furniture. Turnover is £8 million with a profit margin of 7%, equivalent to £560 000/year.

The company’s managing director recently met an old colleague who was singingthe praises of waste minimisation. The MD was not convinced, as the annual cost ofwaste disposal was only £32 000. However, he asked the production manager toprovide an estimate of the total cost of waste. He found the result surprising. Theproduction manager began by calculating the cost of raw material wasted.

Item Total cost of raw material (£) Waste (%) Cost of waste (£)

Solid timber 600 000 44 264 000Board material 300 000 18 54 000Fabric and foam 120 000 30 36 000Wood coatings 160 000 70 112 000Packaging 75 000 5 3 750

Total 1 255 000 469 750

Additional costs included:

■ £23 490 labour costs and processing costs of raw material prior to when it iswasted (estimated at 5% of cost of waste);

■ £32 000 disposal charges.

The total cost of waste was £525 240, some 6.6% of turnover.

The MD realised that a 1% reduction in waste, from 6.6% of turnover to 5.6%,would reduce the cost of waste from £525 240 to £448 000. This amounts to a savingof £77 240 - equivalent to almost a 14% increase in profit!

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1.1.3 Stage 3: Prioritising waste streams

Having established the costs of production and disposal you will be in a position to prioritise yourwaste streams for action. Often your process mapping will identify obvious wastes. However,remember, it is best to start off simply, and to choose one project, rather than trying to do toomuch at once. Choose a project with a short payback period and low effort required to produceresults. Once you have had success and can demonstrate results, then you can move on to thenext project, and gradually tackle larger wastes.

Wastes that arise most frequently or cause the greatest problems are good ones to consider first,but you should collect data to have facts on which to base your decision. Bear in mind that thelargest waste problem may not be the one with the greatest or easiest cost savings.

One way of examining the options is through the use of a waste review table. This will enableyou to rank waste streams by cost or quantity. A blank waste review table for you to use hasbeen included in Appendix 2. Fig 5 demonstrates how to complete it.

In the example above, 44% of the initial raw material is wasted and the true cost of waste isover 45 times the disposal cost. Although the initial conversion process generates a largeamount of waste, significant savings can be made by improving the packaging and deliveryprocess, where the finished product is effectively lost.

Process stage Inputs(Valueadded) Product value

Increase invalue (%)*

Goods in Base board £5/base piece -

Conversion Labour, overheads (£15) £20/piece 400

Secondarymachining Labour, overheads (£12) £32/tabletop 640

Sanding andcoating

Stain, sealer, lacquer,labour, overheads (£54) £86/tabletop 1 720

Packaging anddelivery

Polythene, cardboard,labour, overheads,vehicle maintenance

(£14) £100/tabletop 2 000

* Increase in value compared to base piece.

Fig 4 Calculating value added (as example only)

Process Goods into Waste arisings Waste Value of Total value Disposal Total cost Rank instep process (% of goods produced waste of waste cost (£) (£) order

(tonnes) into initial (tonnes) (£/tonne)* produced (at £30/ ofprocess) (£) tonne) priority

[a] [b] [a + b]

Timberconversion 1 000 35 350 1 000 350 000 10 500 360 500 1

Secondarymachining 5 50 1 600 80 000 1 500 81 500 4

Sanding andcoating 2 20 4 300 86 000 600 86 600 3

Packagingand delivery 2 20 5 000 100 000 600 100 600 2

Total 44 440 616 000 13 200 629 200

* Based on a raw material value of £250/tonne and the increase in % values in Fig 4.

Fig 5 Using the waste review table

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Saving money throughreducing waste

By following the steps in Section 1 you will have identified major waste streams, calculatedthe true costs of your waste and identified priority areas for waste minimisation. So whatdo you do next? How do you actually go about reducing your waste?

This Section presents a systematic approach to waste minimisation. Each process stage is consideredindividually and many no-cost and low-cost ideas are outlined to get you started on how to reducewaste and save money in your business. Industry Examples show how other furniture manufacturershave put ideas like these into practice and have achieved cost savings and efficiency improvements.

The initial conversion of raw materials is inherently wasteful, therefore, many of the suggestionscontained here are about making process changes that involve simply improving the way thingsare done. The preferred waste minimisation options of clean design and process optimisationfocus on preventing waste from occurring in the first place and can lead to substantial savings.In addition, there are many opportunities for waste reduction elsewhere within themanufacturing process, such as through improving storage and handling.

2.1 Clean design

Waste reduction at source through clean design is the ideal waste minimisation option. As well asincreasing the amount of raw material converted into product, significant savings will also be madeby preventing waste arising further down the production line once significant value has been added.

Through clean design it might actually be possible to eliminate wastes completely and theexample below shows how a company has been able to reduce waste through the purchasingof more appropriate raw materials.

Timberwise Furniture Ltd produced tabletops from board materials purchased in standard sizes.Increased disposal costs led to a review of waste arisings and identified a 25% waste rate duringthe initial conversion process.

Following a review of the product design and materials available for purchasing, it was foundthat this waste could be totally eliminated. The retailer was able to use tabletops 1.4 m wideand board could be purchased in sheets 4.2 m long (see Fig 6). Consequently, three tables arenow cut from a single larger sheet and waste has been eliminated through:

■ improved design;

■ changes in purchasing;

■ liaison with customers.

2 m

Table 1 Table 1Table 2 Table 2 Table 3Scrap

Before After

4 m 4.2 m

1.5 m 1.5 m 1.4 m 1.4 m 1.4 m1 m

Fig 6 Clean design eliminates tabletop waste

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During the design phase, identify the type and amount of material that is essential to theproduct. Look at the exact reasons for its presence and question whether or not it is reallynecessary. ‘We have always used it’ is not suitable justification to continue its use.

The factors for you to consider for cleaner design include:

■ Materials suitability. Cheaper materials may be equally suitable for parts of the productthat are not on show, eg cheaper woods for internal components.

■ Quality checks. Ensure that quality checks are relevant to the use of the final product andare not too stringent, causing unnecessary waste.

■ Material volume. Optimise the amount of material suitable to maintain quality. Changingthe width of a small component may lead to significant savings for a large volumemanufacturer.

■ Rationalisation. Customer demands for larger product ranges require an ever increasingnumber of component types. More processing, handling and storage results in increasedwaste. Discuss these issues with the customer and explain that you are trying to improveenvironmental performance by reducing the number of components in circulation. They maybe more receptive than you think and benefits will include good publicity as well as cost savings.

■ Life-cycle Assessment (LCA). Analyse the life-cycle of your product from raw materials in tofinished goods out - and beyond to the end of its life. LCA will enable you to design yourproducts to make optimum use of raw materials, while minimising environmental impacts.

2.2 Purchasing

There are several opportunities to make savings and reduce waste through improved purchasingpolicy. Stock control, materials quality and processing issues are all areas where savings can bemade. Consider:

Layezee Beds used expensive tropical hardwoods for making drawer runners anddivan cornerblocks. Following a review of materials in the product, it was realisedthat cheaper softwoods could be used and were just as efficient and reliable. Thedesign processes and procedures were subsequently altered to prevent the use ofhardwoods in future designs.

See how a caravan manufacturer made first year cost savings of £82 000 in CaseHistory (CH64) Increasing Quality and Profits by Designing Out Waste.

A life-cycle assessment involves the complete analysis of a product, from its creationto its disposal. An assessment will typically look at all of its inputs, the way in whichthe product is used and how it is disposed of, carefully considering its environmentalimpacts at every stage.

Life-cycle assessments are used to identify the most significant impacts of a producton the environment and to focus effort to reduce them accordingly. Moreinformation can be found in Publication (ET257) Life-cycle Assessment - AnIntroduction for Industry.

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■ Stock size. Excessive stock can lead to inadequate storage space, blocking thoroughfaresand promoting poor housekeeping. Plan customer orders as far in advance as possible andbuy in raw materials shortly before processing. ‘Just-in-time’ purchasing frees up valuablespace, eases cash flow and reduces the risk of damage and accidents.

■ Materials unit size. Savings can be made by purchasing materials in different sizes. Buyingwood coatings in 205-litre drums instead of 25-litre tins, where possible, will reduce handlingtimes and the volume of residues by 80 - 90%.

■ Raw materials specification. Significant waste reductions can be made by altering thespecification of raw materials. Higher quality materials have fewer faults (eg knots, kilningmarks) and require less processing. Although better quality materials are more expensive,many companies have found that the increased yield, reduced processing time and lowerdisposal costs have outweighed the premium paid for the higher quality material.

■ Quality. Ensure that goods of the correct specification are actually delivered. Goods ofinadequate quality will have to be disposed of or used for a lesser function. This problem isparticularly notable for some companies using solid timber, where 40 - 70% may beunsuitable for the desired use due to knots, splits, kilning marks and discolouration.

One manufacturer of upholstered furniture was unsure about the volume of usablematerial on rolls of polythene purchased by weight. By weighing the cardboardtubes in the centre of the polythene rolls, it was found that a significant amount ofmoney was being lost through under-supplying. This information was fed back tothe supplier, which is now providing the exact amount of polythene, saving thecompany £9 600/year.

Collins & Hayes has altered its purchasing policy to reduce the waste of beech wood.Previously, unprocessed planks of material were purchased and cut to size. Thecompany now buys random length material that has been cut to the correct depthand width, reducing the amount of woodworking required. Wood waste has sincedecreased by 80%, reducing annual waste disposal costs to landfill by £12 500. Thereduction in processing and waste disposal costs has more than offset the increasedprice per unit of timber.

Eurotek Office Furniture Ltd has implemented quality and inspection procedures toidentify unused timber as waste or scrap. Scrap wood is further separated into ‘RTS’and ‘IPS’:

■ RTS - return to supplier - material of inadequate quality from a supplier;

■ IPS - in-process scrap - material damaged during the manufacturing process.

Scrap material is separated onto scrap trolleys and each item is logged on a dailyscrap sheet which details the origin of the component, its colour, when it wasproduced and the fault code.

Daily figures are entered into a spreadsheet which generates a weekly scrap summaryfor IPS and RTS. These are discussed at weekly management meetings to ensure thattrends are identified and problems rectified at an early stage. Figures for RTS are sentto the relevant supplier and the value is discounted from the next order.

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■ Processing. Companies kilning material on-site prior to processing will incur substantiallabour, energy and maintenance costs. In addition, a large amount of storage and processingspace will also be required. Look at the cost of buying pre-kilned and even partly processedmaterial from your supplier. Your supplier will have the optimum machinery for the processand may be able to produce these materials more economically than you can.

2.3 Materials storage and handling

The storage and handling of materials are integral parts of the manufacturing operation, butbecause they are not directly involved in processing, are often overlooked as areas where savingscan be made. Delicate raw materials, and the difficulties associated with handling furniture, canlead to unnecessary waste occurring. This Section looks at ways of making savings throughreducing waste in both areas.

2.3.1 Storage systems

To minimise waste, assess:

■ Storage areas. Exposure to water or excessive changes in temperature or humidity damagesraw materials, such as timber and cardboard packaging. Store goods inside to preventweather damage.

■ Temperature and humidity. Contact your supplier for information on optimum storageconditions. Some companies use humidifiers in veneer storage areas to prevent drying andcracking.

Cornwell Parker Furniture Ltd investigated waste rates of solid timber componentsand rationalised its ordering and specification policy accordingly at its ChippingNorton site. Previously, it was kilning its own timber - purchasing 1.6 m3 of timberin plank form to achieve 1 m3 of usable timber billets. By standardising billet sizes,the company now purchases 1.2 m3 of timber to achieve 1 m3 of usable billets.

Removal of the kilning operation, with associated heating and labour costs, paid forthe premium associated with billet material, while the savings in the volume oftimber purchased, machining requirements and waste disposal costs amount toaround £250 000/year.

Humidifying the veneer storage area at Senator International Ltd

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■ Solvents. Water-based coatings can be frost-damaged and all coatings become moreviscous upon cooling. Reduce viscosity and the need for thinners by transferring coatings toappropriate warm stores the day before use.

■ Housekeeping. Having to pay to dispose of raw materials because of damage, before theyhave ever been used, is very wasteful. Insist on good housekeeping in storage areas, which willhelp to prevent spillages and spoilage, eg wood warping, or stock exceeding its use-by date.

■ Racking. A well-designed racking system will minimise damage and encourage goodhousekeeping. Locate materials within the rack on the basis of ease of transport andfrequency of throughput, eg store heavy materials on the bottom of the rack and materialswith a high throughput in the most accessible and convenient areas. Ensure that aisles arewide enough for transport vehicles to manoeuvre and keep records of the location andvolumes of all materials in stock.

2.3.2 Materials handling

Problems associated with handling arise at every stage throughout the manufacturing process,from the handling of raw materials to the delivery of finished goods. Ways of reducing wastearisings through improved handling include:

■ Procedures and equipment to ensure the effective handling of raw materials. Risk-assessed standard operating procedures will prevent accidents and reduce waste caused bytired operators.

■ Use of appropriate transport mechanisms. Suitable handling equipment andappropriate training will lessen handling times, improve efficiency and reduce the physicalburden on operators.

Collins & Hayes uses a water-based adhesive for gluing foam and fabrics. The adhesiveis delivered in 1 000-litre bags on collapsible frames. After use, the frames and bagsare collapsed to one sixth of the original size, allowing storage prior to return to themanufacturer for re-use. The alternative would be 1 000-litre intermediate bulkcontainers that take up a significant amount of space, even when empty.

Layezee Beds found that a large number of divan drawers were being damaged intransit around the shop floor. Through the use of improved handling mechanisms introlleys and racks, the number of drawers damaged in the factory was reduced from6% to 1%, with an annual saving of £16 500/year.

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■ Delivery procedures. Ensure that delivery staff are well trained in goods handling andknow how to carry products on and off vehicles without damaging them. Make sure thatgoods are signed for and checked on delivery so that safe delivery is documented.

■ Feedback. Use a reporting system to record any damage that occurs within the factory toidentify and correct any recurring problems.

2.4 Materials processing and coating

2.4.1 Housekeeping

The easiest savings associated with waste minimisation initiatives come from good housekeeping:a clean factory is an efficient one. If the shop floor looks tidy it will be easier to encouragestaff to get involved in waste minimisation and to segregate wastes for re-use and recovery.

■ Dust. Good dust extraction is a requirement of environmental, health and safety legislationand will reduce machine wear, improve quality control and reduce the risk of fire. Somewood dusts are suitable for use off-site and may have retail value.

■ Process wastes. The accumulation of waste materials on the shop floor will present a hazard.Slips, trips and falls make up the majority of accidents at work. Good control and managementwill help to reduce the risk of accidents and the associated costs. In addition, effective wastesegregation and storage practices will encourage good housekeeping in other areas.

■ Solvents. Solvents are hazardous substances and good housekeeping will help to reduceenvironmental risk and waste - for example, through the use of lids on all solvent containers.More information is given in Section 2.4.3 and Good Practice Guide (GG28) GoodHousekeeping Measures for Solvents.

■ Segregation. Ensure that facilities such as skips or bins are in place and clearly labelled toprevent the accumulation of waste materials on the floor. Segregation of materials at sourcewill allow you to monitor individual waste streams, making it easier to re-use and recoverwaste materials.

2.4.2 Process optimisation

Owing to the substantial losses of materials during primary and, to a lesser extent, secondarymachining, new technologies are being used to reduce the amount of waste being produced.This Section identifies the type of technology that can be adopted to improve efficiency in bothtimber and fabric processes.

Computer numerical controlled (CNC) cutting machines, combined with optimisation software,can reduce primary machining waste. Such technology is particularly suited to board material,due to the consistent nature of the substrate, and can reduce waste rates from greater than 25%to less than 10%.

From a waste minimisation perspective, the main benefit of this technology is that it determinesthe optimum nesting arrangement. An operator will typically enter the week’s requirement of partsand the computer will calculate how these can be obtained from the least amount of raw material.

At Senator International Ltd, a colour-coded skip system is used to separate generalwaste, cardboard and materials suitable for on-site combustion. Several of theseskips are situated around the factory, particularly in the areas of greatest wasteproduction, and staff maintaining the boiler are responsible for emptying them.Waste segregation has enabled Senator to find alternative routes for its process by-products, reducing landfill costs by £50 000/year.

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■ Recently, CNC technology has been adapted to suit more complex substrates, eg to cutleather and solid timber using the manual identification of defects combined with anautomated scanning head. This scanner identifies the size and shape of the useful materialand optimises the cutting pattern accordingly. This is illustrated by the Collins & HayesIndustry Example in Appendix 3. The technology can also lead to other benefits:

- increased process speed;

- reduced set-up times, allowing custom and standard designs to be produced at thesame time;

- improved product consistency;

- decreased manual reliance;

- reduced waste.

2.4.3 Spraying and coating

Most companies have significant potential for savings in their coating operations. The followingare some suggestions, but more details are included in Good Practice Guide (GG177) ReducingSolvent Use in the Furniture Industry.

■ Lids. Keep lids on tins to prevent waste through evaporation and to reduce the risk ofspillage.

■ Thinners. Store solvents at suitable temperatures to maintain viscosity. This will avoid theuse of thinners, which operators often apply as a matter of course.

■ Surplus coatings. Avoid catalysing more material than is required for a given period ofwork. Dilute any remaining catalysed material with uncatalysed lacquer and make up thebalance of acid catalyst at the start of the next working day.

■ Transfer efficiency. Ensure that high efficiency spray equipment is used with the correct airand fluid pressures. Fluid temperatures should be optimised to ensure correct flow andatomisation. Details can be found in Environmental Performance Guide (EG130) Solvent Usein Wooden Furniture Coating.

A manufacturer of shutters and other window-related woodwork invested in a CNCrouter, and computer-aided manufacturing (CAM) and computer-aided design (CAD)software at a cost of £80 000. Although a substantial investment, the first job carriedout using the new machinery came in £25 000 under budget, and process times havebeen reduced by 90%.

Cornwell Parker Furniture Ltd uses CNC technology to optimise the cutting of boardmaterial. Waste has been reduced to 8% by entering the requirements of up to fourjobs into the computer so that as much as possible of the board material is used ineach processing batch.

Olympia Furniture Ltd is in the process of replacing the current timber cuttingmachinery with a CNC routing tool, as part of a changeover to the use of dowling inthe production of wooden frames. The cost of the new plant is expected to beapproximately £150 000, but it will reduce the amount of wood required in theframe. A 15% reduction in the volume of timber processed and a payback period ofless than two years are expected.

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■ Cleaning. Where possible, eliminate cleaning solvents by using water-based coatings. Ifsolvents are required, minimise evaporative losses by using solvents with higher boilingpoints, eg replace acetone (boiling point 56°C) with butyl acetate (boiling point 165°C).

2.5 Product assembly, packaging and returns

2.5.1 Assembly

Assembly involves the joining of component parts and will often lead to the identification ofdefective material. To account for losses, manufacturers typically specify 2% more componentsthan are needed.

It is very difficult to avoid waste arising during production, but wastes generated at assembly aremore costly due to the value added. Consequently, even a small reduction in waste duringassembly can result in substantial savings.

Ways of reducing waste include:

■ checking that bought-in components are of the required standard;

■ implementation of suitable handling procedures, with adequate working areas that are notinherently damaging, eg no rough surfaces or sharp corners on assembly benches;

■ raising staff awareness of the value of goods at this stage of the process.

2.5.2 Packaging

High return rates show that furniture is a delicate product that can be easily damaged. To reducetransit damage, one approach has been to increase the amount of packaging used. However,return rates show that this is not always effective and overpackaging could have costlyimplications under the packaging waste regulations. More effective methods to reduce returnrates include:

■ Rationalising packaging use. Many companies are switching to automated packaginglines applying low volume transparent packaging. This enables handlers to see the productand recognise that it can be easily damaged. Flat items will typically be packaged withcardboard end-pieces and placed on a conveyor which passes through a plastic wrappingsection covering the whole of the item with transparent plastic. Such systems also benefitfrom a low labour requirement compared to traditional packing operations.

■ Training. It is essential that operators are made aware of correct handling and transportingtechniques as well as the costs associated with returns.

Cornwell Parker Furniture Ltd has reduced its annual consumption of thinners from 7.9 to 0.2 tonnes, saving £12 000/year. This has been achieved through:

■ elimination: switching to water-based stains;

■ elimination: switching to high solids coatings applied via air-assisted airless sprayguns;

■ reduction: fewer spray guns required, so cleaning operation is reduced.

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2.6 Manufacturing support

2.6.1 Utilities

In addition to process wastes, there are many other areas within a manufacturing base where wastecould be reduced. For example, there are many no-cost and low-cost ways of reducing water usein washrooms, where the true cost of water is higher than the supply and sewerage charges alone.The true cost should include the energy taken to heat and deliver the water in any building.

2.6.2 Energy

There are many ways of improving energy efficiency. Areas of high energy consumption in thefurniture industry include:

■ machinery;

■ compressed air;

■ extraction systems;

■ lighting and heating;

■ office equipment.

In common with all furniture manufacturers, Senator International Ltd has aproblem with goods damaged in transit and products being returned. To counterthis, it has decided to use an increased amount of transparent plastic packaging sothat carriers can see the product they are handling. Senator believes that this hasresulted in fewer damaged returns.

Transparent packaging at Senator International Ltd

More information on how to reduce and improve packaging is given in GoodPractice Guides (GG140) Cutting Costs and Waste by Reducing Packaging Use and(GG141) Choosing and Managing Re-usable Transit Packaging.

More information on how to reduce water use is given in Good Practice Guides(GG26) Saving Money Through Waste Minimisation: Reducing Water Use and (GG67)Cost-effective Water Saving Devices and Practices.

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Talk to equipment suppliers to find out the exact energy requirements of each process and seeif more efficient alternatives are available. This may involve simply switching off lights at the endof the day, to the implementation of a full energy management system. Good practices include:

■ regular servicing to ensure that plant always runs optimally;

■ efficiency reviews of old plant against newer technologies.

2.6.3 Transport

Many companies have their own vehicle fleets for delivering products. Methods to reduceoperating costs and improve environmental performance include:

■ optimum trailer sizes to reduce the number of journeys required;

■ secured return loads to avoid lorries being empty for 50% of their working life;

■ improved vehicle efficiency through regular servicing;

■ optimisation of journey times - software is now available that can identify the most suitabledelivery routes, eg on-board systems to detect traffic problems and provide alternative routes.

Senator International Ltd sets annual improvement targets for each of its utilities. Byreplacing an old compressor, used for supplying compressed air for drilling, thewhole annual target for improved energy consumption was met, with an annualsaving of £12 000.

Cornwell Parker Furniture Ltd was concerned about compressed air costs and decidedto investigate. One area of waste discovered was the use of a jet of air to clear dustand off-cuts from the workpiece. This jet was provided by a compressed air pipewhich was switched on at the start of the shift and switched off at the end of the day.

An automatic switch was applied to the jet of air to switch it off whenever themachine was not in use. Other machines were fitted with a pulsing jet of air ratherthan a continuous one. Rapid payback periods, ranging from four to 21 weeks, wereachieved, with an annual saving of £4 300.

The company has since taken energy management one step further through theimplementation of an energy management system. Installed at a cost of £12 000, thenew system allows the remote controlling of temperature in all areas of the factory,avoiding problems such as the misuse of local controls and continual operation ofheating during weekends and holiday periods.

For information on how to reduce energy consumption see:

■ Energy Consumption Guide (ECG18) Energy Efficiency in Industrial Buildings;

■ FOCUS - The Manager’s Guide to Reducing Energy Bills.

These are produced by the Energy Efficiency Best Practice Programme and are availablefree of charge through the Environment and Energy Helpline on 0800 585794.

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2.6.4 Improving office efficiency

Although offices may not appear to be the most obvious source of waste, plenty of opportunitiesexist for improved efficiency at little or no cost.

As part of its environmental management system, Layezee Beds looked at how itcould improve its fleet operations to increase efficiency. Through the purchasing ofnew vehicles it was able to improve fuel consumption, generating annual savings of£37 000. In addition, a number of larger trailers were purchased to reduce thenumber of journeys being made. An annual saving of £28 000 for this has beenestimated, with a payback period of 2.5 years.

The following publications, produced by the Energy Efficiency Best PracticeProgramme, provide further information on how to improve fuel efficiency intransport and can be obtained free of charge through the Environment and EnergyHelpline on 0800 585794:

■ Good Practice Guide (GPG218) Fuel-efficient Fleet Management;

■ FMG Fuel Management Guide;

■ Energy Consumption Guide (ECG59) Fuel Consumption in Freight Haulage Fleets;

■ Fuel Efficiency Booklet (FEB20) Energy Efficiency in Road Transport.

Good Practice Guide (GG256) Green Officiency: Running a cost-effective,environmentally aware office provides detailed information on improvingenvironmental management in the office and focuses on paper, waste, water, energyand transport.

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Alternatives to disposal

The waste hierarchy (see Fig 2) shows that waste prevention and reducing the amount ofwaste generated will always bring more benefits than finding alternatives to disposal.Eliminating or reducing waste at source will save the most money. Other options shouldbe considered only after assessing the opportunities for waste minimisation.

What are the remaining options?

■ Re-use - the direct incorporation of waste into products.

■ Recovery and recycling - the transformation of waste into useful materials.

■ Waste to energy - the conversion of waste materials into energy through combustion.

The benefits arising from these options are often twofold, reducing waste disposal costs andgenerating a useful product or material that can be turned into income.

3.1 On-site re-use and recovery

Once you have identified all of your waste materials, look at different ways of incorporating orusing them in your products. This may require a change in approach to product design and timeto investigate the possibility of using waste in new products. In certain cases, it may actually bepossible to create complete products from waste materials.

To help you to think about how you can incorporate waste materials into your products, try toanswer some of the following questions:

■ What is the smallest usable component in the manufacturing process?

This information should be readily available and will provide you with a minimum size of materialthat can be re-used. Once you have identified the smallest usable component, eg drawer end,you will know that anything smaller cannot be incorporated directly into your manufacturingprocess.

■ Can the product be redesigned to incorporate waste materials?

Where waste is of a consistent quality and is produced in a large enough volume on a regularbasis, it may be possible to incorporate it into the product itself, either as an essential componentor as just a design feature.

One North American company has built a mill that manufactures MDF entirely fromwaste wood. Waste materials are chipped prior to washing and cleaning. Wastewood is particularly good for breaking down into the fibres needed for MDFmanufacture and, owing to the environmental implications arising from theproduction of the new material, demand has been very high.

Layezee Beds re-uses wood off-cuts as ‘widgets’ on the corners of divans, providingan extra design feature.

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■ Is it possible to produce new products from waste materials?

Waste materials arising from changes in product lines and damaged/marked goods are oftenfundamentally sound and contain many salvageable parts. Instead of sending them for disposal,see if you can regenerate products that are suitable for sale via different retail outlets. As returnsdo occur, useful components may be taken from the returned goods and incorporated back intothe main production process or, in the case of superficially damaged goods, sanded down,recoated and resold.

■ Is it possible to process the waste into a material that can be used elsewhere?

Through changing their properties or form, many waste types may be suitable for directincorporation into your products, turning waste into a valuable material.

■ Can waste be used for packaging on goods-out?

Some companies use timber off-cuts for infill packaging on flat-pack goods or for the protectionof vulnerable bases. However, timber is a heavy form of packaging and will incur thecorresponding obligation under the packaging waste regulations.

Wood off-cuts can be used in the production of screens, such as those used fordividing up open-plan offices. Suitable off-cuts are sifted out and glued and pinnedtogether to provide a frame. The frame is then covered in cardboard to provide aflat surface and fabric is attached to give it a smart finish. The result is a lightweightscreen, largely produced from waste materials.

Screen manufacturing using wood off-cuts

Olympia Furniture Ltd buys foam in uncut blocks and uses it for two purposes. Firstly,soft linings are cut for use on upholstered furniture, such as cushioning of arms andlegs. A typical waste rate from this cut is 10%, although it may be as high as 20%.These off-cuts are then passed through a crumbing machine that chips the foam intoa suitable form for use as filling for cushions and mattresses. Through this recoverysystem, Olympia has not only managed to totally eliminate foam from its wastestream but purchases waste from other companies.

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3.2 Off-site re-use and recovery

If you cannot economically re-use or recover your waste into materials for use within yourproducts, look at other possibilities off-site. With the rising costs of landfill disposal, otheroptions are becoming increasingly attractive and can result in substantial savings.

■ Are there local companies that can take your waste?

Working on the basis that your waste is someone else’s raw material, it may be possible to supplyyour waste material to others as a useful product with little or no cost attached.

There are alternatives to landfill, many of which will be location-specific, but try to consider someof the ideas in Table 1.

Olympia Furniture Ltd sends out its final products on wooden pallets. The pallets aresold with the furniture and bought back from the customer as and when required,maintaining a market for pallet re-use. Through giving the pallets a monetary value,a financial benefit is gained from continued re-use, as it reduces the amount ofpackaging waste included in any obligation under the packaging waste regulations.

Welsh Biofuels takes wood waste from the Bridgend area and converts it into woodpellets. These are sold for use in domestic and industrial pellet burners.

Waste type Options

Wood off-cuts Particleboard manufactureCharcoal manufactureCrafts (local schools and groups)Local residents (fuel)Pellet manufacturer

Sawdust and shavings Briquetting (fuel)Equestrian usesAnimal beddingComposting

Metal off-cuts (eg springs, furniture legs) Re-use in local industry

Fabric and leather Crafts (local schools and groups)

Foam Re-use as mattress/cushion filling

Cardboard Recovery contractors

Plastic Recovery contractors

Packaging Re-use with product

Table 1 Off-site re-use and recovery options

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3.3 Waste to energy

Each year about 100 furniture manufacturers invest in sizeable combustion plant (>1.3 MW) togenerate heat from their wood waste. Combustion with heat recovery is becoming anincreasingly attractive option as payback periods decrease due to increasing landfill costs andconventional fuel prices.

Wood combustion units will normally be fed by a silo that collects wood dust from filtrationunits. Larger wood off-cuts can also be introduced into the silo. To maintain a combustion plantwith an output between 0.3 - 3 MW, a wood feed rate of 70 to 600 kg/hour is required.

Benefits of wood combustion include:

■ less reliance on external energy sources through generation of usable heat;

■ reduced fuel costs;

■ lower landfill disposal costs;

■ reduced waste storage space requirements;

■ less reliance on waste disposal contractors;

■ increased self-sufficiency;

■ replacement of fossil fuels.

If this approach is adopted then care is required to ensure that timber containing halogenatedmaterials (eg materials containing chlorine, such as PVC edgings) are not incorporated into thewaste. There are two reasons for this. Firstly, the unit would fall under the strict requirementsof the waste incineration directive, requiring expensive abatement equipment. Secondly, theproduction of acid gases and subsequent condensation in the flue gas ductwork will cause rapidcorrosion problems in the combustion unit.

Layezee Beds has identified all of its waste products that can be re-used or recycledmore economically than disposal to landfill:

■ wood shavings and dust are collected and sold for use as animal bedding at £60 - £70/tonne;

■ larger wood off-cuts are given to a local company for use in manufacturingwoodchip wallpaper;

■ cardboard is sold to a local recycling firm at £15 - £16/tonne.

Senator International Ltd has installed a wood combustion plant at its site that nowprovides 50% of the factory heating requirements. Savings are estimated to be£50 000/year for landfill costs and £20 000/year for gas. Consequently, total savingsare expected to amount to £70 000/year, giving a boiler payback period of three tofour years, at current landfill disposal prices. With predicted rises due in landfilldisposal costs (because of the landfill directive) savings are likely to be even greater.

Senator also operates a fleet of 60 vehicles and has an on-site garage for servicingthem. A by-product of this is waste oil. In recognition of this potential fuel source,a fuel burner has been installed in the garage workshop, and is now used to heat theworkshop independently of the mains gas supply.

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Maintaining momentum

Once you have started your waste minimisation programme, you need to monitorprogress to assess the benefits of the initiative and to justify continued action.Sometimes it can be difficult to maintain the momentum and some ideas of how this canbe achieved are discussed in this Section.

4.1 Setting targets and reporting progress

During the initial stages of the programme, you will have identified and quantified some of themain process waste streams. From this starting point, reduction targets will have been set andthese should be reviewed regularly. As the programme advances, targets can be revised toreflect your increasing knowledge of how easily improvements are made.

The recording and reporting of progress in bulletins, newsletters or simply on a notice-board, willhelp to maintain interest in the programme. This feedback of information and results is essentialfor maintaining enthusiasm and commitment. It will also demonstrate how well the programmeis working and where the greatest benefits have been achieved. Whichever way you choose, thedissemination and feedback of information is an important step in the development of a wasteminimisation programme.

4.2 Environmental awareness training

Training and educating staff about the impact of their activities on the environment and thebusiness will help to develop and maintain your waste minimisation initiative. Without the co-operation and commitment of staff, you will not achieve the full potential savings and staffinvolvement will increase once they understand the benefits of improved practice. You will findit helpful to:

■ inform staff as to the true cost of waste, relating it to product value or a comparative increasein sales;

■ encourage all staff to suggest ideas on how to reduce costs and improve efficiency;

■ feed back information on progress.

4.3 Environmental management systems

An environmental management system (EMS) provides a company with an integrated approachto identifying, managing and monitoring its environmental impacts (and aspects) and complyingwith environmental regulations. Companies may elect to follow an EMS in which the wasteminimisation programme is an integral part or, conversely, may wish to start with a wasteminimisation programme, as it will produce the main benefits achieved through an EMS.

An EMS can be implemented on an informal basis, or certified to a standard (eg ISO 14001)by an external organisation. The third-party check imposes a discipline on environmentalmanagement activities and demonstrates commitment to environmental improvements. Thereare several benefits from the adoption of an EMS which, if implemented effectively andefficiently, will:

■ reduce costs and improve efficiency through waste minimisation;

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■ reduce adverse environmental impact;

■ enhance a company’s reputation with customers, neighbours, lenders and other stakeholders.

For more information on how to implement an EMS, see Good Practice Guide (GG137)How to Set Up Environmental Management Systems in the Textiles Industry.

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Take action

Train and educatestaff in the benefits

of wasteminimisation.

Encourage all staffto get involved and

suggest ideas forwaste reduction.

Section 4

Monitor progresstowards targets

and developmethods for

reporting to all.

Appendix 2

Set targets forimprovement and

implement themost suitableoptions for

achieving them.

Section 4

Calculate costsand prioritisewaste streams

using the wastereview table.

Section 1

Identify mainareas of wastegeneration and

produce awaste map.

Section 1

Indentify wasteminimisationoptions and

estimate savingsand payback

periods.

Sections 2 and 3

Appoint a waste champion and team.

Establish management commitment

Fig 7 Action plan to save money through waste reduction

If necessary, obtain help.

The Environment and Energy Helpline (0800 585794) can:

■ Provide up to two hours of free expert advice on any environmental or energyefficiency problem.

■ Send you copies of relevant publications.

■ Suggest other sources of information.

■ Arrange for a specialist to contact your company if you employ fewer than 250people, at the discretion of the Helpline Manager.

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5.1 Useful contacts

Organisation Telephone number Web site

Envirowise 0800 585794 www.envirowise.gov.uk

Energy Efficiency Best 0800 585794 www.energy-efficiency.gov.ukPractice Programme

Department of the 020 7944 3000 www.detr.gov.ukEnvironment, Transportand the Regions (DETR)

Department of Trade 020 7215 5000 www.dti.gov.ukand Industry

Scottish Executive Energy 0141 242 www.scotland.gov.ukEfficiency Office 5835/5832/5823/5831

Government Office - 02892 623000 www.detini.gov.ukNorthern Ireland (IRTU)

National Assembly for Wales 01222 825172 www.wales.gov.uk

BFM Ltd (Association of 020 7724 0851 www.bfm.org.ukBritish FurnitureManufacturers)

FIRA (Furniture Industry 01438 777700 www.fira.co.ukResearch Association)International Ltd

Table 2 Contact list

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Waste opportunity checklist

Process area Wastes produced

Raw material Spillagesstorage

Spoilage

Out-of-date products

Products no longer used

Excess product

Packaging from raw materials, components, fixtures and fittings

Empty containers and pallets (non-returnable)

Woodworking Off-cuts

Sawdust/shavings

Sandings

Personal protective equipment (gloves, goggles, ear defenders etc)

Off-specification products

Veneer

Veneer press washdown effluent

Glue

Glue containers/packaging

Metalworking Off-cuts/scrap metal

Personal protective equipment (gloves, goggles, ear defenders etc)

Swarf

Lubricating oils

Degreasing liquids

Evaporative losses

Rinsing effluent

Powder overspray

Upholstery Foam

Fabric

Cardboard

GG290 published by Envirowise Helpline 0800 585794

Process area Wastes produced

Coating Waste solvent/thinners

Personal protective equipment (gloves, goggles, ear defenders etc)

Fugitive emissions (particulates and VOCs)

Filters

Water backbooth effluent

Off-specification products

Rags

Coating tins

Packaging Cardboard

Plastic

Wood and tape

Transport Oil and oil filters

Tyres

Metal scrap

Brake linings

Vehicle washdown effluent

Batteries

Energy Compressor condensate

Air leaks from lines

Boiler blowdown

Lights left on

Unnecessarily high temperatures

Heat loss through doors, windows etc

Money wasted through poor energy purchase price

Water Taps left running

Poor toilet flush controls

Unnecessary washdowns

Unnecessary urinal flushing

Leaks

Maintenance Scrap metal

Oil

Cleaning solvents

Lighting

Office Paper

Food

Cardboard

Toner

Energy - lights, heat, equipment

11

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GG290 published by Envirowise Helpline 0800 585794

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Waste review table

Pro

cess

ste

pG

oo

ds

into

pro

cess

(to

nn

es)

Was

te a

risi

ng

s(%

of

go

od

s in

toin

itia

l pro

cess

)

Was

tep

rod

uce

d(t

on

nes

)

Val

ue

of

was

te(£

/to

nn

e)

Tota

l val

ue

of

was

te p

rod

uce

d (

£)(a

)

Dis

po

sal

cost

(£)

(b)

1050

0(b

ased

on

a di

spos

alco

st o

f £3

0/un

it)

360

500

350

000

100

035

035

100

0Ti

mbe

r co

nver

sion

Tota

l co

st(£

)(a

+b

)

1

Ran

k in

ord

er o

fp

rio

rity

GG290 published by Envirowise Helpline 0800 585794

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Industry Examples

Industry Example 1 - cost savings throughenvironmental management at Layezee Beds

Layezee Beds is part of the Silentnight Holdings Group and is based in Batley, West Yorkshire.The company employs 410 staff and has an annual turnover of £28 million. The company rana programme of continuous improvement aimed at process efficiency and adopted BS7750, aformal environmental management system (EMS), in 1994. Layezee Beds was one of the firstcompanies accredited to BS7750 and is now certified to ISO 14001.

Since the introduction of the EMS, Layezee Beds has made annual savings of £360 000,amounting to 1.3% of annual turnover.

The manufacturing process at Layezee produces a variety of waste materials:

■ wood off-cuts;

■ sawdust and shavings;

■ spring wire;

■ cardboard and plastic packaging;

■ damaged returns.

In addition to identifying the process waste streams, Layezee Beds identified all of itsenvironmental impacts as part of its EMS. The company also looked at ways of makingimprovements in the following areas:

■ water consumption;

■ energy efficiency;

■ transport.

Implementing the environmental management system

The potential for waste reduction was first identified by examining the content of skips whichwere sent for landfill disposal. Any material with a potential for re-use found in skips was puton display in the staff canteen. This waste was estimated at having a raw material value of£90 000/year, although the value to the company of reducing this was higher - if the added valueof work done to the raw material and avoided disposal costs were taken into account.

The EMS was set up and run by a team champion and an Environmental PerformanceCommittee. The time demand placed on the team champion is estimated at three to four dayseach month and the committee consists of eight members that are all senior management anddirectors. The committee meets every two months and reviews progress towards itsenvironmental targets, which are set at the beginning of each year. Environmental aspects arereviewed internally every two years and the accrediting body audits the site twice a year.

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Financial benefits of improvements

Many savings have been made as a result of improved environmental performance, several ofwhich are:

■ Elimination - change from screwing runners to divan drawers to using clamps. As a result,runners were more sturdy and no screws were needed, resulting in an annual saving of£5 500.

■ Waste reduction - total and comprehensive redesign of divans to minimise the volume of rawmaterials used. This resulted in a 3% reduction in raw materials and an annual saving of£188 000.

■ Waste reduction - polythene waste arising from the bagging process was reduced byincreasing the size of the bags used. Although each bag actually contains more polythene,the increased margin of error resulted in fewer failed bags due to incomplete seals. Wastewas reduced from 10% to 8% and a direct annual saving of £7 500 was made.

■ Re-use and recycling - wood off-cuts, sawdust and shavings, cardboard and springs are allsold or given away at no extra cost. The sale of materials generates around £60 000/year,turning waste into profit.

■ Energy - a photosensitive lighting system, requiring no manual intervention, and a systemoptimiser for electricity usage were installed. These cost £5 400 with a payback period of justover two years.

Summary

Layezee Beds has successfully implemented an EMS, resulting in annual savings of £360 000.The success of the EMS has been dependent on several critical stages:

■ demonstration of the value of the waste to the workforce;

■ appointment of a team champion and suitable team;

■ involvement of all staff;

■ external assessment;

■ setting targets and monitoring improvements.

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Industry Example 2 - new technology puts Collins &Hayes on the cutting edge

Collins & Hayes uses leather and timber products in the manufacture of upholstered furniture.Rapid expansion in recent years has enabled the company to invest in computer numericalcontrolled (CNC) technology to improve yields obtained during the initial conversion phase,saving £17 500/year.

Timber processing

An optimising cross-cut saw has been purchased recently and is able to maximise yield arounddefects marked on the timber. Prior to cutting, an operator marks defects with fluorescent chalkand a camera scans the timber, measuring the length of the required piece and the distancebetween defects. The most economical cutting pattern is then calculated based on the week’stimber requirements.

Once cut, the machine prints the piece number and destination onto each piece to indicate whichmachine needs to perform the next operation. This speeds up the segregation and distributionprocess. The machine cost £35 000 and the payback period is estimated to be two years.

The benefits of the machine are:

■ reduced waste;

■ faster production and sorting of components;

■ safer and quieter operation because of the enclosed nature of the saw.

Leather processing

Due to the nature of the material, there will always be patches of inferior quality resulting fromtears, scratches, insect bites and colour discrepancies. Defects are graded from 1 (minor) to 4(major) and minor categories may be used on furniture parts that are not obviously visible, suchas the chair base.

The new leather cutting machine holds the leather in place and an operator marks the defectswith an electronic pen. The grading is displayed on a computer monitor, to ensure that noblemishes are missed, and the computer works out the optimum cutting arrangement for thehide based on the week’s requirements.

Benefits of the machinery include:

■ reduction in leather waste;

■ optimum use of defective material;

■ consistent cutting accuracy, avoiding problems further down the production line and wastageafter value has been added;

■ generation of data on hide utilisation, defect levels and seriousness - the latter informationcan be used to facilitate discussions with suppliers;

■ significant labour reduction.

The machine has multiplied the output per person in the cutting area by three to five times. Thisavoids the need to embark upon the six-month training programmes required by new cutters,which would hinder expansion programmes.

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Industry Example 3 - environmental improvementslead to increased efficiency at Cornwell Parker

Cornwell Parker Furniture Ltd has two sites - Parker Knoll Furniture at Chipping Norton,Oxfordshire, and Parker Knoll Cabinets (Nathan) at Edmonton in North London. The ChippingNorton factory employs 550 staff and manufactures upholstered chairs. Production is based onbeech, ash and board materials from which chairs are produced, coated and upholstered usinglining materials such as foam.

Through identification and close examination of the main areas of waste production, substantialimprovements in environmental performance have been made.

Wood processing

Reduced processing and improved purchasingBy removing the timber kilning process and standardising billet sizes, the company has improvedthe ratio of conversion of raw materials into usable billets from 63% to 83%. Although thecosts of purchasing have increased, several benefits have resulted in an annual saving of£250 000:

■ removal of kilning operation with associated heat and labour costs;

■ reduced volume of timber purchased;

■ reduced machining requirements;

■ lower waste disposal costs.

Wood combustionInstead of sending waste wood for landfill disposal, a wood combustion facility with heatrecovery was installed at a cost of £480 000. Although this is a substantial investment, thereduction in landfill costs and heating fuel saves £100 000/year, giving a payback period, atcurrent prices, of four to five years.

Board processing

Waste has been reduced to 8% by entering the requirements of up to four jobs into thecomputer so that as much as possible of the board material is used in each processing batch.

Care with ‘nesting’ has also paid dividends. Previously, two components were produced from apiece of board resulting in significant amounts of waste. The new method places the itemscloser and allows a third component to be made from the previously surplus material. This hasalso reduced the amount of sawing.

Component handling

If the waste rate for cut components exceeds 5%, a report must be made and an investigationheld into the cause. All stages of component manufacture are identified and examined to focuseffort on finding suitable solutions.

Wood coating

The redesign of the coating shop has led to a significant reduction in the waste of man-hours.Work-study analysis showed that under the old system, up to 40% of a sprayer’s time was spentlifting and carrying furniture to and from the coating booth. Since installing a conveyor belt, theonly manual handling requirement for most spraying operations is the turning of the conveyorpedestal to allow 360° spraying. The result is that sprayers spend more time actually coatingfurniture, increasing throughput and reducing lead time.

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Summary

Cornwell Parker Furniture Ltd has managed to implement cost-effective measures throughcareful consideration of the exact requirements of each manufacturing process step. With along-term programme of investment, the company has demonstrated a commitment toimproving its environmental performance and has recognised how these measures can pay forthemselves. Adoption of a formal EMS should further assist in this process.

Envirowise – Practical Environmental Advice for Business – is a Government programmethat offers free, independent and practical advice to UK businesses to reduce waste atsource and increase profits. It is managed by AEA Technology Environment and NPLManagement Limited.

Envirowise offers a range of free services including:

Free advice from Envirowise experts through the Environment and EnergyHelpline.

A variety of publications that provide up-to-date information on wasteminimisation issues, methods and successes.

Free, on-site waste reviews from Envirowise consultants, called Fast Track Visits,that help businesses identify and realise savings.

Guidance on Waste Minimisation Clubs across the UK that provide a chance forlocal companies to meet regularly and share best practices in waste minimisation.

Best practice seminars and practical workshops that offer an ideal way toexamine waste minimisation issues and discuss opportunities and methodologies.

For further informationplease contact the

Environmentand EnergyHelpline0800 585794© Crown copyright. First printed February 2001. Printed on paper containing a minimum of 75% post-consumer waste.

This material may be freely reproduced in its original form except for sale or advertising purposes.

Harwell International Business Centre | 156 Curie Avenue | Didcot | Oxfordshire | OX11 0QJE-mail: helpline@envirowise.gov.uk Internet: www.envirowise.gov.uk

Practical Environmental Advice for Business