Rik Renner Predatelstvo Smert Voskresenie. Rik Renner RuLit Net 240252
Carpet to Coats: Reducing Waste & Helping Humanity Tom Norris, Al Renner, Edward Taylor 1.
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Transcript of Carpet to Coats: Reducing Waste & Helping Humanity Tom Norris, Al Renner, Edward Taylor 1.
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Agenda
• Abstract: Al• Company Profile: Edward• Developing TBL Framework: Edward• Sustainability Deployment: Tom• Outcomes & Impacts: Al• Ongoing Sustainability Practices: Edward• Challenges & Opportunities: Tom• Local & National Impact: Al• Audit Instrument: Tom• Income Statement: Edward• Balance Sheet: Tom
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Abstract
• Non-profit organization• Nylon coats from recycled carpet• 5.9 billion lbs carpet discarded 2009• 96% in landfills; 4% recycled• Markets – charities, govt. agencies, retail• Addresses TBL – Planet, People, Profit• Start Up Cost $ 3 million• 80/20 plan for start up capital
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Company Profile
• Location• Building specifications and cost• 6 Business processes• Key elements of manufacturing process
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Developing TBL Framework
• The three founders of Carpet to Coats strongly believe that the true purpose of business extends beyond just making a profit
• established five functional priorities: – (1) to receive the carpet recycler’s raw materials– (2) to make durable and functional coats – (3) to distribute the final product to various retailers and
non-profit organizations – (4) to increase the number of domestic carpet donators– (5) to solicit contributions from public and private investors
who want support our business
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Sustainability Deployment
• Each department will be assigned a liaison responsibility for SMS initiatives (includes outsourced services)
• Ensure a minimal impact to the environment during all processes
• Improve internal and external social conditions• Bring economic growth to our supplier and the
surrounding community
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SMS Environmental
Department Activity Aspect Impact Significance
Logistics Community Involvement Find ways to obtain community used carpet
Reduce carpet in landfills 35
Accounting Transactions & Record Keeping
Review regulations to determine valid electronic methods
Reduce the use of paper 30
Operations Work Flow Analysis Observe work patterns and implement efficient SOP's
Minimize energy usage 30
Logistics Shipping and Receiving Research & Implement efficient shipping methods
Reduce fossil fuel usage 25
Logistics Shipping and Receiving Research & Implement efficient shipping methods
Reduce Maintenance costs 30
8
SMS Social
Department Activity Aspect Impact Significance
SMS Board Renovating the facilities
Research & Implement energy savings and recycled materials during facility renovations
Minimize energy usage 35
Marketing Community Involvement Increase awareness of carpet recycling
Reduce carpet in landfills 30
Marketing Public Relations Influence public about our product Increase sales 25
HR Employee Recruiting Offer opportunities for employee growth
Improve skills of employees 25
HR Employee Retention Implement programs to keep employees with company
Increase productivity 30
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SMS Economic
• Implementing the Environmental and Social aspects will also bring Economic benefit such as:– Employee retention and recruiting
• Reduces training costs & increase productivity.• Passionate employees
– Reduced costs of shipping– Increased job opportunities
Department Activity Aspect Impact Significance
Sales Sales Promote any special incentives to government agencies that purchase our product Increase sales 35
Sales Sales Promote any special incentives to national retailers Increase sales 30
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SMS Action Plan
Department Aspect Category Objective Targets
Logistics
Find ways to obtain community used carpet Environmental
Offer community carpet recycling area
Receive and ship carpet to Shaw’s
Accounting
Review regulations to determine valid electronic methods Environmental
Choose a system that meets regulatory rule that eliminates need for paper Choose proper system
Operations
Observe work patterns and implement efficient SOP's Environmental
Conduct Work-Flow Analysis Reduce energy usage
Logistics
Research & Implement efficient shipping methods Environmental
Minimize usage of Gasoline/Diesel while meeting customer's needs
Implement a shipping and receiving system using clean alternatives
Logistics
Research & Implement efficient shipping methods
Environmental & Economic
Implement system with minimal maintenance costs
Find most effective shipping procedures. Consider external sources of transportation.
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SMS Action Plan (Cont)
Department Aspect Category Objective Targets
SMS Board
Research & Implement energy savings and recycled materials during facility renovations
Social & Environmental
Reduce energy usage while gaining functional improvements
Obtain at least 15% savings with renovations.
Marketing Increase awareness of carpet recycling
Social & Environmental
Introduce owners of major buildings (casinos, schools, hotels) of the Evergreen program
Get an agreement with 50% of companies contacted to join Evergreen program within 18 months
Marketing Influence public about our product
Social & Environmental
Implement on-line campaign of Carpet to Coats mission
Establish an online presence through social networks, YouTube®, and a company website
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SMS Action Plan (Cont)
Department Aspect Category Objective Targets
HR
Offer opportunities for employee growth Social & Economical
Employee recruiting from local colleges
Establish relationship with local colleges
HR
Implement programs to keep employees with company Social & Economical
Employee retention program
The board should also look for ways to keep employees such as reward programs and longtime employee incentive
Sales
Promote any special incentives to government agencies that purchase our product
Economical & Environmental
Promote any special incentives to government agencies that purchase our product
Be in contract with at least 20 government customers in 18 months
Sales
Promote any special incentives to national retailers
Economical & Environmental
Promote any special incentives to national retailers
Be in contract with at least 2 national retailers in 18 months
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Outcomes & Impacts
• Operations Personnel Management– Carpet donation on site encourages recycling– Diverting 600,000 lbs of carpet from landfill/year– Package Flow Tech for delivery routes
• Personnel Management– Lost work time reduced 20% via health & safety– Communicate sustainability commitment to
employees– Environmentally friendly admin processes
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Outcomes & Impacts
• Supplier – Shaw’s Evergreen Nylon Recycling– Evergreen carpet reclamation program– CARE awards for recycling innovation– Has reclaimed 300 million pounds of post-
consumer carpet since 2006• Stakeholders– CARE effort has three interlinked goals– Charity customers improve People aspect of TBL
15
Ongoing Sustainability Practices
• Integration into business processes • Integration into compensation and
performance management • Employee buy-in
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Challenges & Opportunities
• Increased costs upfront & additional costs to maintain sustainability.– Managers examining the workflow for operations
• Training.– SMS team– Employees must understand our SMS policy,– SMS audit team
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Challenges & Opportunities
• Employees must be convinced that it is a worthwhile strategy. – Employees must embrace the culture of sustainability
• Consumer’s preference– Some customers may wonder if the coat is free of
undesired material.
– consumers tend to view sustainable products high in ethicality, but may think the product lacks the performance of normal produced goods
18
Challenges & Opportunities
• Ahead of any possible environmental legislation passed here or internationally. – Reduced disruptions to business
• Partnership with Shaw's Evergreen Nylon Recycling will give a strong foundation to implement our own sustainability program. – Their example and experience will certainly give us
some key insights for implementing sustainability in the manufacturing industry.
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Challenges & Opportunities
• Our community used carpet recovery site– Surrounding businesses can donate their used carpet at
our location instead of the landfill. – Financially beneficial for them as they can possibly avoid
landfill fees.
• Marketing ability. – Our SMS could enable us to increase sales to federal,
state, and/or city services that have a green purchasing initiative.
– Retailers that have green conscience customers.
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Local & National Impact
• Sustainability - Labor & Human Rights – HR policies provide labor rights per United Nations– Clean safe working conditions– Competitive wages & benefits/incentives
• Sustainability – Environmental Principles– 1st priority is environmental aspect of TBL– Intergenerational equity via reducing carpet waste
stream– Managing economic growth to be green
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Audit Instrument
Environmental Aspects
Aspects
(1) Unsatisfactory
(2) Somewhat unsatisfactory
(3) Satisfactory
(4) Slightly above
Satisfactory
(5) Exceedingly Satisfactory
Amount of carpet donated (in lbs.)
Decrease in amount of wattage consumed per month
Use of low power computers and equipment
Amount of recycled paper
Methods of work processes most efficient
Use of fuel efficient shipping methods
Amount of used carpet diverted from landfills
Amount of water consumption
22
Audit Instrument (Cont.)
Social Aspects
Aspects
(1) Unsatisfactory
(2) Somewhat unsatisfactory
(3) Satisfactory
(4) Slightly above
Satisfactory
(5) Exceedingly Satisfactory
Amount of participants in Evergreen
Number of YouTube visitors
Number of Facebook Fans
Employees from College outreach
Employee Turnover rate
Regular offering of educational opportunities relating to employee satisfaction
Regular offering of educational opportunities relating to eco-friendly behaviors
Number of employees involved in volunteer activities
23
Audit Instrument (Cont.)
Economic Aspects
Aspects
(1) Unsatisfactory
(2) Somewhat unsatisfactory
(3) Satisfactory
(4) Slightly above
Satisfactory
(5) Exceedingly Satisfactory
Amount of government customers
Amount of sales of national retailers
Amount of sales to non-profit
Savings from renovation projects
Amount of grant dollars
Cost of shipping
Impact (productivity)of employee turnover rate
Promotion of sustainability of product
Amount paid in bonus pay
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Audit Instrument (Cont.)
Review Objectives and Targets
Objective Targets Current Progress Comments
Offer community carpet donation area Receive and ship carpet to Shaw’s Click here to enter text. Click here to enter text.
Choose a system that meets regulatory rule that eliminates need for paper Choose proper system Click here to enter text. Click here to enter text.
Conduct Work-Flow Analysis Reduce energy usage Click here to enter text. Click here to enter text.
Minimize usage of Gasoline/Diesel while meeting customer's needs
Implement a shipping and receiving system using clean alternatives Click here to enter text. Click here to enter text.
25
2011 2012 2013Revenue
Sales 1,200.00$ 1,260.00$ 1,348.20$ Cost of Goods Sold 261.42$ 274.49$ 293.71$
Gross Revenue 938.58$ 985.51$ 1,054.49$
Expenses
Contracted Services from 360° Inc 50.00$ 50.00$ 50.00$ Salary & Benefits 242.35$ 247.45$ 254.60$ Utilities & Shipping 91.80$ 90.96$ 90.13$ Depreciation 26.81$ 26.81$ 26.81$ Selling, General, & Administrative 240.00$ 252.00$ 269.64$
Total Expenses 650.96$ 667.22$ 691.18$
Gross Profit 287.62$ 318.29$ 363.31$
Operating Income 260.81$ 291.48$ 336.50$ Interest 37.25$ 36.68$ 36.09$ Earnings before Taxes 223.56$ 254.79$ 300.41$ Dividends 42.00$ 44.10$ 47.19$ Taxes -$ -$ -$ Net Income 181.56$ 210.69$ 253.23$
Carpet to CoatsIncome Statement
For Year Ending (in thousands $)
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AssetsCurrent Assets
Cash 23.83$ Accounts Receivable 350.00$ Inventory 11.90$ Prepaid Expenses 9.18$
Fixed AssetsLand 200.00$ Building 800.00$
Less Accumulated Depreciation (16.67)$ Equipment 125.80$
Less Accumulated Depreciation (10.14)$
Total Assets 1,493.90$
Liabilities and Owner's EquityCurrent LiabilitiesShort-Team Loan $200.00Unearned Revenue 10.00$ Non-Current LiabilitiesLoans Payable 738.94$
Owners' EquityRetained Earnings 544.96$
Total Liabilities & O.E. 1,493.90$
Carpet to CoatsBalance Sheet
As of December 31, 2011 (in thousands $)
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AssetsCurrent Assets
Cash 30.00$ Accounts Receivable 340.00$ Inventory 10.00$ Prepaid Expenses 9.00$
Fixed AssetsLand 200.00$ Building 800.00$
Less Accumulated Depreciation (33.33)$ Equipment 125.80$
Less Accumulated Depreciation (20.29)$
Total Assets 1,461.18$
Liabilities and Owner's EquityCurrent LiabilitiesShort-Team Loan $150.00Unearned Revenue 15.00$ Non-Current LiabilitiesLoans Payable 727.30$
Owners' EquityRetained Earnings 568.87$
Total Liabilities & O.E. 1,461.17$
Carpet to CoatsBalance Sheet
As of December 31, 2012 (in thousands $)
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AssetsCurrent Assets
Cash 29.00$ Accounts Receivable 335.00$ Inventory 9.80$ Prepaid Expenses 8.70$
Fixed AssetsLand 200.00$ Building 800.00$
Less Accumulated Depreciation (50.00)$ Equipment 125.80$
Less Accumulated Depreciation (30.43)$
Total Assets 1,427.87$
Liabilities and Owner's EquityCurrent LiabilitiesShort-Team Loan $100.00Unearned Revenue 16.00$ Non-Current LiabilitiesLoans Payable 715.08$
Owners' EquityRetained Earnings 596.79$
Total Liabilities & O.E. 1,427.87$
Carpet to CoatsBalance Sheet
As of December 31, 2013(in thousands $)