Costing of resource flowsCosting of resource flows

Samantha KumarasenaSamantha KumarasenaDeputy DirectorDeputy Director

National Cleaner Production Centre, National Cleaner Production Centre, Sri LankaSri Lanka

Why is costing of resources Why is costing of resources necessary?necessary?

Input resources & waste streamsInput resources & waste streamsto a industrial entity (in common)to a industrial entity (in common)

Raw materials

Water

Electricity

Thermal energy

Emissions

Effluents

Solid wasteHeat loss

Process

WASHING

Detergent

WaterE. Energy

Anti Crease AgentSteam

Heat

Waste WaterDetergents

Anti Creasing Agent

Noise

Input resources & waste streamsInput resources & waste streamsto a single process step to a single process step

(e.g. Washing of garments)(e.g. Washing of garments)

Resource (Input) inventory in a Tea Resource (Input) inventory in a Tea factoryfactory

Tea leavesTea leavesElectricity (National Grid/Generator/own Electricity (National Grid/Generator/own

minihydro plant)minihydro plant)Fuel woodFuel woodDiesel …Diesel …

Resource (Input) inventory in a Resource (Input) inventory in a cotton dyeing plantcotton dyeing plant

Grey fabricsGrey fabrics Supply water (treated) Supply water (treated) Electricity (National Grid/Generator)Electricity (National Grid/Generator) Furnace oilFurnace oil DyesDyes Caustic sodaCaustic soda Glauber saltGlauber salt Soda ashSoda ash Detergent …..Detergent …..

Costs of inputsCosts of inputs

Purchase of raw materialsPurchase of raw materialsRaw material transportation costsRaw material transportation costsRaw material preparation &Raw material preparation &

Processing costsProcessing costs Inventory holding costsInventory holding costsUtility billsUtility bills

Cost of value additionCost of value addition

Processing costsProcessing costs- labour cost- labour cost- electricity & other energy costs- electricity & other energy costs- water- water- support services- support services- advisory services- advisory services

logistics logistics

Costs of waste streamsCosts of waste streams

Cost of resources lostCost of resources lostWaste collection, handling & Waste collection, handling &

transportationtransportationOperation of waste treatment facilitiesOperation of waste treatment facilitiesDischarge fees, levies, permit costsDischarge fees, levies, permit costs……

Waste streams vary!Waste streams vary!E.g. Waste inventory in a Garment E.g. Waste inventory in a Garment

washing plant washing plant Waste waterWaste waterDamaged garmentsDamaged garmentsSpilled out/left over chemicalsSpilled out/left over chemicalsPackaging materialsPackaging materials……....

Initial investment costsInitial investment costs Site preparationSite preparation PermittingPermitting Purchased equipmentPurchased equipment Working capitalWorking capital Utility systems and connectionsUtility systems and connections Start up trainingStart up training ContingencyContingency Salvage valueSalvage value

(Example case of DC mill)