Options, measures, results: Ecoprofit–Styria–Prepare two years after project end

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Page 1: Options, measures, results: Ecoprofit–Styria–Prepare two years after project end

Journal of Cleaner Production 6 (1998) 237–245

Options, measures, results: Ecoprofit–Styria–Prepare two yearsafter project end

Johannes Fresner*

Stenum GmbH, Geidorfgu¨rtel 21, A-8010 Graz, Austria

Abstract

In 1992 and 1993 11 companies, three of them in Styria, one of the Federal States of Austria, took part in the so-called “Prepare”projects in Austria funded by the Ministries of Science and Environment, Youth and Family together with the Innovation andTechnology Funds to reduce successfully their waste and emissions. The project Ecoprofit–Styria–Prepare, which was initiated bythe Styrian Government, is based on the model of the above-mentioned projects. By consulting 13 companies individually, it shouldcreate examples of Cleaner Production for typical sectors and sizes of the Styrian industry as an efficient approach to solve problemsassociated with waste disposal and emissions. These should serve as reference cases and catalysts among their industries and regionsto spread the idea of Cleaner Production among Styrian companies.

One and a half years after the end of the consulting project, a study was conducted to find out the results, which had actuallybeen realized. Therefore interviews were done with all the companies which had participated in the project. Questions asked includedthe degree of realization of the Cleaner Production options defined during the project and the development of attitude and manage-ment in the meantime. The economic savings amounted to 0.5–1% of turnover on average.

We know from statistics of the chamber of commerce that the typical Styrian production enterprise is a small one employing21 people. This study provided us with clues, which characteristics guarantee success for Cleaner Production projects especiallyfor these very small companies.

The interpretation of the answers is a difficult task as the project companies are quite heterogeneous regarding product, productionand organization. It can be shown that there is a pattern, which options were realized depending on whether the companies aresmall ones or big ones. The bigger ones realized more technological options whereas the small ones concentrated more on goodhousekeeping measures.

The results show that especially for a successful program with small enterprises it is not enough to indicate Cleaner Productionoptions, but that very detailed help has to be provided to guarantee success: this help can include experiments and demonstration,but also basic and detailed engineering. 1998 Elsevier Science Ltd. All rights reserved.

Keywords:Cleaner production program; Options; Measures; Results; Small and medium-sized enterprise

1. Case study method

The aim of the selection of companies was to get arepresentative section of the Styrian industry involved[1,2]. Selection criteria were: belonging to sectors witheconomic importance for Styria and with typical wastesand emissions concerning their amounts and potential forreduction, reuse and recycling. Additionally, we wanteda variety of the number of employees to determine the

* Tel.: 1 43-316-367156; Fax:1 43-316-367156/13; E-mail:[email protected]

0959-6526/98/$19.00 1998 Elsevier Science Ltd. All rights reserved.PII: S0959-6526 (98)00024-9

influence of size of the enterprise on its response to theproject. Table 1 characterizes the participating compa-nies according to the sector and the number ofemployees [3].

The average number of employees was 277; 54% ofthe companies had fewer than 200 employees (Fig. 1).

The case studies were funded by the companies them-selves (50%), different offices of the Government ofStyria and the Department of Environmental Protectionof the City of Graz (25%) and the Austrian Innovationand Technology Funds (25%).The companies contrib-uted with labour of their employees for data collection,investigation of waste reduction options and realization

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Table 1Participating companies

Company Sector Number of employees

1 Metal processing industry 11002 Metal processing industry 3403 Metal processing industry 164 Metal processing industry 405 Electrical industry 2436 Electronic industry 3287 Woodworking industry 118 Woodworking industry 159 Woodworking industry 860

10 Food processing industry 9811 Food processing industry 10812 Pulp and paper industry 42013 Textile industry 26

4

3

2

1

0less than 20 20 to 50 50 to 200 200 to 500 more than

500

number of employees

num

ber

of c

ompa

nies

Fig. 1. Distribution of sizes of the companies.

of measures. The support of the authorities and the Inno-vation and Technology funds was used for consultants,experts for special technological problems, and measure-ments, where necessary and appropriate. The budget was800 hours for the consultants in each company project.The two small carpenters made one project together.

Besides generating references for Cleaner Productionsolutions the project should provide us with empiricalexperience to improve training materials for other con-sultants, develop concepts for seminars and short coursesand give recommendations on how to apply Cleaner Pro-duction concepts to environmental problems [4] to prob-lems typical for the Styrian industry.

In the project, the companies were consulted individu-ally. The approach which was used consisted of six steps(Table 2).

Table 2Project steps in the case studies

1. Organization and preparation of the project2. Data collection to establish an overview and lay a

foundation for eco-controlling3. Definition of weak points4. Setting priorities5. Identification of options to minimize waste and emissions6. Implementation of measures and controlling their efficiency

In the organizational phase the companies and theconsultants got to know each other. A team was formedboth in the company and from the consultants. Therewere usually two external consultants: one senior andone junior consultant in each project team. The scheduleof the project was defined. The project team in the com-pany consisted of representatives of all the relevantdepartments: board of directors, accounting, buying,logistics, production, waste management, works council,sales. The members of the team were trained in theAustrian Prepare method [3].

After the planning of the project in early 1994 andthe formation of the team in the companies the first criti-cal step was the collection of data. To start with, an over-view of the inputs and outputs of the company whichlists all the materials and energies in use and all the pro-ducts and emissions by their mass and their economicalvalue was worked out, as far as possible. The organiza-tion of the company and its flow of information wereanalysed. Flowsheets of the processes were constructed.Efficiencies were determined from mass and energy bal-ances. The duration and time consumption of this stepdepended strongly on the company and its electronic dat-abase. Input/output analyses formed the basis for aninformation system working with indicators.

Many surprises were generated, when the value ofwaste was not only linked with the costs for its disposal,but the cost of the raw materials and the costs for manu-facturing this waste. In the case of a producer ofupholstery the purchasing value of the waste textiles wassome 30 million ATS (US $15 12 ATS, 1997), or 3%of the turnover! To visualize these connections and thequantities Sankey diagrams are a supreme means. Fig. 2shows the flow of copper in a wire production company.The materials which we had a closer look at were selec-ted either for their mass, value or legal or toxicologicalrelevance. These materials included raw materials (e.g.copper, fabrics, paints, solvents), water, or waste. Energywas also tracked. Matching information from differentdepartments as well as from the technical and theaccounting people concerning the actual use of materialsand their value often created new insights.

The problem with this approach was the availabilityof data. The consultants had to develop a subtle intuition;how much detail they demanded in case data was notreadily available. Often measurements (e.g. weighing ormetering) had to be done, as the data on the flows ofmaterials or energy characterizing the use and the wastedshare could not be extracted from records or calcu-lations, were inaccurate or simply wrong. Especially thenexperience was needed. There were two aims of theanalysis phase: not to leave out important materials andwaste streams and at the same time not to overstrain theproject team.

Thus the starting points for further work to reduce thewaste and emissions became clear: points with waste of

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Fig. 2. Flow of copper in a cable-producing company.

high value or legal or toxic relevance were consideredfirst. Options for avoiding waste and emissions weregenerated by systematically asking for the exact reasonsfor these wastes: step-by-step options were developed tochange the physical, chemical, technical, organizationalor human reasons for waste and emissions.

External consultants helped with the generation ofoptions, by avoiding routine blindedness and findingcause and effect and options for improvement. So inmany cases it could be shown that:

I raw materials could be omitted;I raw materials could be substituted by cheaper ones or

less harmful ones;I the quantity of raw materials could be decreased;I materials could be recycled in the processes; orI waste materials could be utilized inside the company

or in other companies.

The fundamental objective of all these projects wasnot to treat the symptoms but to avoid waste already atits source: good housekeeping options were identified.Alternative processes and materials were located andexamined. Automation and control were answers tomany pollution problems. Closing cycles (e.g. of water)was another answer. Where there were no solutions, theneed for research was identified. Where possible, pro-jects were defined and initiated.

By the end of July 1995, more than 200 options toavoid waste and emissions had been defined by theteams in the companies and by the external consultants.Especially in companies which use a lot of chemicals,many options to reduce waste and emissions could bedefined.

All in all it was estimated after the finish of the workin the companies that approximately 20 million ATS

could be saved annually by these options according tothe monetary criteria of the companies.

2. Results of the case studies: options

The lessons learned during the projects included thefollowing:

I Cleaner production is a process that takes time, as itinvolves organizational changes as well as technologi-cal changes.

I Leadership of the project manager in the company andcreative consultants are needed for starting lastingsuccessful pollution prevention projects.

I The work in the companies must be focused on solv-ing the companies’ problems and consider theirdaily practice.

I It must not overload them with academic work.I It is not enough for consultants to locate the techno-

logical options:I They also have to be effective catalysts in a process

that changes attitudes and organization.

This corresponds with the analysis given by Fresneret al. [5]. The options as known in 1995 are describedelsewhere [3]. These “options” include things that theproject team thought to be feasible and financially poten-tially interesting. These results are typical for the find-ings also from other projects: 44% of the number ofoptions found in the projects were not technical ones, butorganizational ones and good housekeeping! 33% wereprocess changes, 9% changes of raw materials, 8% exter-nal recycling or compostation and 6% internal recycling.Moreover, many of these options were already knownto the operators and they only had to be collected sys-

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tematically, evaluated financially and presented to themanagement. The options and their economic evaluationwere documented in a project report.

Fig. 3 shows that neither the size nor the sector towhich the company belongs determined the number ofCleaner Production options identified in one company.This number seems to depend on the experience of theconsultants involved in the respective project in therespective sector. Around 15 options could be identifiedon average in each company, when the consultants hadgeneral Cleaner Production experience, but no explicitexperience in the relevant sector. In two companies 45options each could be found: here consultants workedwho were already experienced in the relevant sectors.

What was changed immediately? There follow someexamples of results during the project work and rightafter the project end. In a machine-producing companythe project aim for the reduction of solid waste wasdefined by: “Half is enough”. The project resulted in a60% reduction of solid wastes. The same is true for atleast four more companies. The COD of waste watercould be reduced by 25–40%, the water consumptionand the waste water amount also. One company, merelyby better servicing of its fat separator and by proper cle-aning, could reduce the COD of the waste water by 50%!Solvent use for painting generally could be reduced by20–50%.

Also the consumption of energy could be reduced upto 40% in some companies, especially if drying oper-ations were employed [3,6]. One and a half years afterthe end of the project, we went back to the companies,which had not been continuously contacted in the yearsafter the actual project. The project managers who werestill employed in the companies or their successors wereasked about the results and the activities the companieshad set in the meantime and what they were planningto do in the near future for the further development ofenvironmental activities of the companies.

The method used was the following. First a question-naire was developed, which referred to all the options asthey were documented and elaborated in the final projectreports and asked whether they had been realized in the

50

45

40

35

30

25

20

15

10

5

00 200 400 600 800 1000 1200

number of employees

num

ber

of o

ptio

ns

Fig. 3. Distribution of options among companies.

meantime or not. If the option was not implemented itwas questioned why. Further questions included whetherthe companies had included environmental aspects intheir policy and whether they planned to introduce anenvironmental management system.

The companies were supplied with this questionnairetwo weeks before the interview and asked to prepare alsodata to illustrate the results from measures. The actualinterview typically lasted for two to three hours in thecompany and was followed by a walk through the plant.The answers then were evaluated and put together in areport [9].

3. The results one year after

Of the options defined by the end of the projects inmid-1995, 137 were realized. The annual economicbenefit out of the measures was 27.4 million ATS (US$1 5 12 ATS, 1997). Approximately 15 million ATSinvestments had been made.

The realized ecological benefits are given in Table 3:a lot could be done to decrease the use of raw materials,especially of metals, plastics, and auxiliary materials.Energy relevant data are not included in this table, as inthe companies with big energy savings exact figures arevery difficult to determine, because there were no goodreference data at the beginning of the project, distri-bution of products changed or even the working hours.Table 4 gives examples for actual measures. Fig. 4analyses the distribution of the financial benefits amongthe categories of Cleaner Production options. The finan-cial data are calculated very conservatively and excludethe problems referred to in the discussion of the energy-relevant options above in this paragraph. However, therealization of measures is a continuing process.

We conclude that it is important to do such surveysregularly. It is clear, however, that the longer the timeelapsed after the project end the more difficult itbecomes to determine the exact influence of the pro-ject work.

The ecologically most important measures are thoseat the very source (changes in raw materials and tech-nology, good housekeeping). However, external recyc-

Table 3Ecological benefit of Ecoprofit–Styria–Prepare (without energy)

Avoided emission Kg/a

Metal scrap 350,000Plastics 110,000Auxiliary materials (lubricants, cutting emulsions …) 130,000Solvents 30,000Water 30,000,000COD 22,000

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Table 4Examples for realized measures

Category Examples

Good housekeeping Accurate dosage by weighing instead of estimationDefinition of working instructions for washing processesIntroduction of waste logisticTraining of painters, training of workers doing cutting

Substitution of raw materials Reduction of thickness of packaging filmsSubstitution of chlorine containing cleaning agentsSubstitution of chlorinated solvents

Process changes Automation of washing processChanges in defreezing technologyChanges in dryersChanges in fat separatorsChanges in paint application technologyIncreased storage capacity to facilitate continual operation

Internal recycling Internal recycling of zinc ashesRegranulation of plasticReuse of spent solvent for cleaning toolsReuse of waste yarns

External recycling Recycling of foam plastics as filling materialsReuse of fibre sludge in the construction industry

Good Housekeepingand orginisation

5%Substitution of raw

materials6%

Processchanges

26%

Internal Recycling11%

ExternalRecycling

52%

Fig. 4. Distribution of monetary benefit of measures.

ling and compostation offered a comparatively high fin-ancial potential in this project. Considering thateconomical savings are an important motivation for par-ticipation in Cleaner Production projects, this provesvery important. This indicates also that increased effortsshould be made to create networks of companies, whichsynergetically use resources and process “waste” ofothers [7].

The measures were further analysed. Fig. 5 shows thedegree of realization of the options individually for goodhousekeeping, substitution of materials, changes in pro-cess technology, internal and external recycling. Thepercentage varies between 40% (changes in technology)and 67% (external recycling).

To analyse the determinants of the degree of realiz-ation further, we analysed the degree of realization ofCleaner Production options as a function of companysize in more detail (Figs. 6–10).

In the small enterprises, good housekeeping optionswere realized apparently to a higher percentage than in

External Recycling

Internal Recycling

Process changes

Substitution ofraw materials

Good Housekeepingand organisation

0 10 20 30 40 50 60 70 80(%)

Percent of realization

Fig. 5. Degree of realization of good housekeeping and organiza-tional measures, substitutions of raw materials, changes in processtechnology, internal and external recycling.

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30

25

20

15

10

5

00 200 400 600 800 1000 1200

number of employees

num

ber

Fig. 6.1. Number of good housekeeping options per company (dotsrepresent the number of options, the trend line shows that the depen-dency of the number of good housekeeping options of the companysize is weak).

100

90

80

70

60

50

40

30

20

10

00 200 400 600 800 1000 1200

perc

ent

number of employees

Fig. 6.2. Realization of good housekeeping options (dots representthe results of the interviews, the trend line shows that the implemen-tation was higher in smaller enterprises).

120

100

80

60

40

20

00 200 400 600 800 1000 1200

number of employees

perc

ent

Fig. 7. Substitution of raw materials.

large ones (Fig. 6), which may be for different reasons.We suppose that identification with the project is largerdue to the direct contact of more employees with theproject team. It is also easier to implement cheaper mea-sures in a small company with little resources.

There is no simple interpretation of the realized substi-tutions of materials (Fig. 7): This was done by some

16

14

12

10

8

6

4

2

00 200 400 600 800 1000 1200

number of employees

num

ber

Fig. 8.1. Number of options to change processes.

perc

ent

0 200 400 600 800 1000 1200

number of employees

100

90

80

70

60

50

40

30

20

10

0

Fig. 8.2 Realization of process changes.

100

90

80

70

60

50

40

30

20

10

00 200 400 600 800 1000 1200

number of employees

perc

ent

Fig. 9. Internal recycling.

bigger companies completely, but also by smaller ones.One would expect that bigger companies can do so eas-ily: because of their financial relevance they can exert acertain pressure on their suppliers to assist them withchanges. A reason for the high realization in smallerenterprises could be that the companies taking part inthis project are more innovative and active than averagesmall and medium-sized companies.

The situation is different with technological options(Fig. 8): here the degree of realization is apparently

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100

90

80

70

60

50

40

30

20

10

00 200 400 800600 1000 1200

number of employees

perc

ent

Fig. 10. External recycling.

lower in the small companies. We conclude that this isthe case because the risk associated is relatively greaterfor the smaller companies and that they would need spe-cial back-up technical help, risk capital and maybe moretime. Bierma and Waterstraat [8] make similar assump-tions regarding capital investment in small companiesfor pollution prevention measures.

Fig. 9 shows that internal recycling options were fullyrealized in nine companies. The variation ranges, how-ever, from 0% to 100% in the case of very small compa-nies. The realization of external recycling options andcompostation is lower (Fig. 10). The trend is similar asin the case of internal recycling.

From Fig. 11 we see that the monetary savings accord-ing to the data given by the companies amounted to anaverage of 0.5–1% of turnover.

4. Which options did not become measures?

Out of 264 options which were proposed during theproject duration and documented in the final reports, 127were not realized. The reasons are given in Fig. 12.

According to the reasons given by the project man-agers in the companies, 48% of the options not realizedwere not introduced because of technological problems,25% were not realized because of lack of time to do so,16% proved to be or were considered not to be economi-

10

1

00 200 400 600 800 1000 1200

number of employees

savi

ngs

(% o

f tur

nove

r)

Fig. 11. Monetary savings.

low priority11%

no time25%

not economical16%

technologicalproblems

48%

Fig. 12. External recycling.

cal, and 11% were merely given low priority and notresearched any further.

Technological problems (48%) also include practicalproblems (location of new apparatus, how to connectapparatus, how to conduct piping, where to putadditional storage tanks, relatively expensive control,actual performance of water-based paints or new spray-ing guns), which had not been taken into account duringthe actual project. An important barrier proved to be therisk involved with technological change. The apparentrisk of production losses sometimes proved to be beyondthe risk the company was willing to take. “Low priority”and “no time” are very similar reasons: they mean,according to some of the project managers interviewed,simply that the addressed problem seemed not worththe effort.

5. How will the companies continue?

In the series of interviews conducted in late 1996 [9],more than one year after the end of the projects, 69%of the companies said that they had integrated environ-mental considerations into their business philosophy.31% answered that they had not conducted any furtheractivities after the end of the project.

One company was already certified according to ISO14.001 and takes part in the EMAS scheme of the Euro-pean Community. Three companies currently are introd-ucing an environmental management system. Five moreare planning to do so in the near future. Only four haveno plans to introduce an environmental management sys-tem (Fig. 13).

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The introduction of an EMS is...

already introduced 8%

not planned 31%

planned 61%

Fig. 13. Savings per company.

6. Recommendations for small and microenterprises

What can we learn from these reference cases for thebroad implementation of Cleaner Production in the Styr-ian industry? In Styria, there are 44,000 companies inindustry and service industries [10]. 8030 of them areproduction companies. The production companies havean average of 21 employees. In some sectors, e.g. in thewoodworking industry, this number comes down to 12.The mean of all companies including tourism and ser-vices is 6.

How can we effectively address the problems of thesesmall and micro enterprises? Let us elaborate brieflywhat the special features of these enterprises are:

They

1. are led by the owner, who runs the business, sells theproduct, maybe does special expert jobs and is alwaysshort of time;

2. have no staff;3. have only limited access to information on new tech-

nology and best practices;4. sometimes use outdated equipment;5. have very limited financial resources for investment

in new technologies;6. have only verbal procedures and a low degree of

automation and instrumentation;7. produce small lots or batches with frequent change

and many cleaning operations and adaptation to cus-tomers’ wishes.

In small enterprises, it is very important to find low-cost options, especially organizational ones: we havelearned that the smaller the company the higher the

degree of realization of good housekeeping options. It isalso possible to change raw materials. The implemen-tation of technological measures is lower in small com-panies: the more money has to be invested and the biggerthe risk involved in relation to the company size, thelower the degree of realization.

Communication processes play an important role ina Cleaner Production program. Independent consultants,who are not salespeople for a certain raw material ortechnology, are important to stimulate effective transferof new ideas. The consultants work catalytically to trans-fer know-how which has been filtered technically,environmentally and economically. Marketing infor-mation is readily available, not available is evaluated andcomparative knowledge.

Thus a Cleaner Production program for small compa-nies should include as basic elements motivation andtechnological and organizational support:

Creation of awareness by creating surprise at the costof raw materials and energy involved and the potentialfor saving and showing the environmental benefit in thecontext of sustainability and creation of the feeling thatone can do something about it is a prerequisite.

Consultants have to put their finger expertly on thevery problems and guide to solutions, make contactswith vendors, and show examples. They also act as afilter which selects reliable and relevant information forthe companies.

These two points converge closely with the obser-vations of van Berkel ([11], p. 284). Creating a networkof experiences of companies working at the same prob-lems, vendors and customers and creating lasting links,formal and informal, on an informational and materiallevel helps to find options and implement measures. Forconsultants working in these projects this means that ahigh level of social, organizational and technologicalknowledge and skills is essential. The consultants andthe companies need infrastructure: databases, referenceindicators, knowledge on best available technology andvendors, measuring equipment and engineeringcapacities.

A Cleaner Production Program for small and verysmall enterprises has to be very cost effective: in spiteof the relatively high potential, the monetary savingsinvolved do not amount to very large sums. Thus thefinancial effort or the time consumed by the project hasto be kept low.

Strategies to meet the time problem are:

I very clear worksheets and manuals with a minimumnumber of pages to work through should be used;

I there should be plenty of help and discussion in col-lecting the data, and a critical evaluation of the data;

I good estimates should be provided where no or incon-sistent data are available;

I the focus should be on personal, convincing infor-

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mation to the point, which is analysed for its relevanceand accuracy and tailored to fit before by experi-enced consultants;

I the project shall be aimed at the stimulation of innov-ative ideas all over the company and therefore includeproblems like product design, waste logistics, healthand safety, and legal aspects.

An indication of the acceptable cost for the partici-pation in a Cleaner Production Program can be inferredfrom the figures derived in this paper.

To overcome the financing problem opportunities forloans and subsidies should be made available to the com-panies [8].

Acknowledgements

This work was funded partly by the Government ofStyria, the City of Graz, and Austrian Innovation andTechnology Funds. We appreciate the work of H.J. Alt-enburger, Th. Dielacher, P. Eder, H. Ferner, O. Gelinek,A. Kogler, J. Jantschgi, M. Nußbaumer, B. Russegger,J. Sage, K. Schauer, B. Sebesta, J. Seiler, F. Sprenger,H. Widenmeyer of Stenum GmbH, M. Fegerl of TUBFegerl, L. Bernhard of Maschinenfabrik Andritz AG, W.Wolfbauer of Pumpen Bauer, F. Solka of MosdorferVerzinkerei, J. Mitsche of Zimmermann Verzinkerei, K.Todtner of Pengg Kabel AG, J. Weinzo¨dl of SteirischeElektronik, A. Ulrich of Tischlerei Ulrich, J. Knaus ofTischlerei Knaus, E. Wiesenhofer of ADA Polstermo¨bel,J. Seidl of Brauerei Murau, K. Reiner of Wurst Reiner,

A. Schweitzer of Zellstoff Po¨ls AG, A. Holechkova ofLoden Leichtfried, and the numerous experts contribu-ting to the sucess of this project.

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