Reduce Hazardous Waste to Small Quantity Generator Status

BubbaLarry, Moe, & Curly

2

Project Development

• EHS Risk Assessment identified plant’s status as a LQG as a high priority issue– The elimination of our status as a LQG will:

• Have major effects on the sustainability core value of our corporation

• Have a potential to increase our shareholder value through realized cost savings and public perception

3

Objectives

• Reduce hazardous waste generation from 10 drums/month to <5 drums/month

• Reduce the quantity and associated cost of metal working fluids utilized

• Team with a solvent recycling company to reduce solvent usage

4

Our Consultant at Work

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Scorecard MetricsScorecard Description Metric FY03

ActualFY04 Goal

Q1 Q2 Q3 Q4

Component Units

Key EHS Opportunities

 Reduce HW to Small Quantity Generator status  Drums of waste per

month

10/mo < 5 /mo 10 8 6 4

Stakeholder

Engineering- 1.) Install and oversee pilot project 2.) Obs./ Oversee installation of new solvent recycling process 3.) install new equipment % Completion 0% 100% 25% 50% 75% 100%

EHS - 1.) Specify EHS requirements for solvent project % Completion 0% 100%       100%

Purchasing - Contract set-up % Completion 0% 100%       100%

Org Effectiveness

Engineering 1.) Determine effectiveness of pilot project (QA/QC) 2.) Retain solvent reclamation co. 3.) Assign engineer to develop improvement plan timeline % Completion 0% 100%       100%

EHS - 1.) Review regulations pertaining to solvent reclamation 2.) File for generator status in Q4 % Completion 0% 100%       100%

Purchasing - 1.)Deveop bid package 2.) Send out bids 3.) Review and aqrd bid % Completion 0% 100%       100%

Learning

Employees - Conduct training on new equipment % Completion 0% 100%       100%

Engineering 1.) Research solvent reclamation technologies % Completion 0% 100% 100%     100%

EHS - Same % Completion 0% 100% 100%     100%

Purchasing - Same % Completion 0% 100% 100%     100%

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Project Benefits

• Net cost savings of $68,000 within 3 years

• Raw material reduction

• Reduced labor costs on maintenance and waste management

• Reduced permit fees and taxes

• Reduced chemical exposure

• Waste minimization to community

• Public perception• Good corporate

citizen• Reduced reporting

requirements• RIGHT THING TO

DO!

Tangible Intangible

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Estimated Project Costs

Year Eng Mods Training Vendor Total Costs

1 $ 50,000 $ 25,000 $ 10,000 $ 85,000

2       $ -

3       $ -

4       $ -

Total Costs = $ 85,000

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Estimated Net Savings

Year Net Savings

1 $ (55,000)

2 $ 61,600

3 $ 61,600

4 $ -

Total $ 68,200

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Financial Analysis

Present Value of Savings: PV(Savings)

$124,463

Net Present Value of Savings: NPV(Savings)

$47,190

Payback Period: 1.7 years

ROI Net (3 Years): 61%

Internal Rate of Return(3 Years):

76%

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Conclusions and Recommendations

• NO BRAINER….SHOW ME DA MONEY!!!

• WE JUST NEED A LOUSY $85,000 BUCKS….YOU GET IT BACK AND AN ADDITIONAL $68,OOO BACK IN 3 YEARS

• DO THIS AND RUN THE COMPETITION OFF THE ROAD