Welcome and Action Plan Updates

Simon Drury, Supply Chain Partnership Manager

Michael Savage, Resource efficiency advisor

Agenda

09.30 – 09.40 Introduction & Action Plan Update

09.40 – 09.50 Drivers for improved waste prevention & management

09.50 – 10.05 Tools and techniques for identifying opportunities

10.05 – 10.20 Task 1 Process flow diagram

10.20 – 10.40 Identifying specific areas of opportunity

10.40 – 10.50 The food and drink supply chain

10.50 – 11.10 Task 2 identifying wastes along the supply chain

11.10 – 11.35 Food waste prevention – best practice

11.35 – 11.55 Task 3 Identifying barriers in your supply chain

11.55 – 12.00 Questions and close

Our priorities Business Plan period (2011-2015)

Minimising resource use in products and buildings

Diverting priority materials from landfill

Drivers for waste prevention and improved waste management

Waste in the retail supply chain

A series of site reviews showed that the sector could save about £404m by improving efficiencies around food and packaging waste

(WRAP studies)

Waste in the retail supply is estimated at 6.6m tonnes per year with an annual cost of £5bn.

3m tonnes is food waste.

Waste in the Hospitality and Food Service sector

A study of the Hospitality and Food Service sector identified 3.4 million tonnes of waste/yr from the profit subsector

600,000 tonnes is food waste Eliminating avoidable food waste could save the sector £722 million/year WRAP studies ongoing in the cost subsector

HIDDENCOSTS

VISIBLE COSTS

Disposal costs: Effluent, Skips, Landfill charges, Air pollution charges

Energy use

Utility use

Raw materials

Labour

Handling & storage

Transportation

The true cost of waste = 4% of turnover

Maintenance

Time

Effort

Production capacity

Rework

Lost profit

Hospitality & Food Service Agreement

Legislative and other requirements Duty of Care

Hazardous Waste Regulations

Animal by-products (ABPR)

Packaging Waste Regulations

Scotland Food Regulations– England next?

British Soft Drinks Association

Food and Drink Federation (FDF) Five-fold environmental ambition

FDF Greener Food transport checklist

Reputation

Red Bull gives you…

Customer expectations

Green is Normal report

“80% of UK consumers

were concerned with the

environmentally friendly

disposal of food waste.”

Plan A

Tools and techniques for identifying opportunities

The Waste Hierarchy

The EU’s Waste Framework Directive has been the primary mechanism for driving changes in legislation, and includes the ‘waste hierarchy’.

Tax on waste sent to landfill

Compositional Analysis

Think about Health & Safety - people throw

anything away!

Choose a representative sample

- think about sampling

different areas

If possible weigh the materials

Understanding the waste you produce

To successfully minimise your wastes, you must understand where they are being produced.

Waste mapping will allow you to identify:

the types of waste you produce

where and why these wastes occur

the volumes and costs of waste produced

priority areas for action

Step 1 – Develop a plan of the site

Step 2 – Go on a walk around and take pictures

Step 3 – Recruit and speak to colleagues

Step 4 – Mark all points of material input

Step 5 - Mark all points of output (including bins)

Creating a Waste Map

Waste mapping process

Take photographs

Talk to key people

Gather information on amounts and costs

Estimate the potential savings associated with a few of the more promising opportunities to reduce resource use

Action planning

Site Walk

Next step – process diagrams

By producing a waste map, you will have identified the waste types your organisation produces and where on your site they arise

You should now be able to identify the individual processes and areas in your organisation that produce your waste

Each process will have inputs (materials and utilities) and outputs (wastes and emissions)

Task 1 – process flow diagrams

Inputs: materials and

utilities Process

Outputs: wastes and emissions

Aim: create a simple process diagram for an area of your organisation that creates a lot of waste

Complete the inputs and outputs for that area Add as much detail as possible Don’t forget those items disposed of infrequently Once you have completed the list try and rank the

items in terms of low, medium or high cost

You have 10 mins in total for the exercise and a group discussion

Identifying specific areas of opportunity

Identifying specific areas of opportunity

Where should you focus first?

Which wastes are costing you most?

Which wastes occur most often?

Which wastes are avoidable?

Identify the cause of waste Understanding the root ‘cause’ of waste and the

‘effect’ it has on your costs and processes is one way to better understand where your waste recycling/reuse opportunities lie.

It will also help you understand why your waste is being created.

Example – delivery area

How is the waste being created? Quality checks are identifying damaged products on arrival to the storage warehouse.

Where is the waste being created? Stock is being damaged during transit from delivery to warehouse (identified on a waste map?).

Why is the waste being created? Pallets are being pierced by shelving in the delivery area when in transit to the storage warehouse. This is damaging the products.

Compiling a full fishbone diagram

Waste

No clear instructions

Poor training

Manpower

Changeover times too slow

Methods

Supplied outside spec

Wastage during set-up

Materials

Breakdowns

Running too slowly

Machinery / Equipment

Food waste from kitchen is

contaminating plastic recycling

Contamination of recycling bins

Products failing quality test

Process Improvements – Mass Flow Analysis

Once you have mapped the process, and inputs and outputs, the next stage is to establish the weight of each input and output material over a set period of time (day, week or month) or per production unit.

Remember that everything that goes into the process must come out.

Then add the mass of each individual component to your process waste flowchart.

Mass Flow Analysis – Biscuit Manufacture

The following process waste flowchart illustrates a mass flow analysis completed on a chocolate chip biscuit manufacturing process.

How is product lost?

Inefficient use of raw materials – e.g. size of pastry sheet not optimised for profiles needed

Poor production scheduling – e.g. changing product formulation requiring cleaning

Loss of raw materials during product preparation – e.g. ingredients loss to floor

Loss of product during cleaning – e.g. residues in pipework and ‘stuck’ to vessel walls

Loss during packing/filling through ‘overweight’ or ‘give-aways’

Finished product damaged or perished – e.g. cooked food damaged when taking out of container or excess food produced

Re-engineer line to prevent loss?

Interim measure – use clean trays to capture fallen sausages to be introduced to line

Cooked sausages falling off production line

Yield losses

Giveaway losses

BAT suggests as low as 0.125% overfilling is possible

In practice giveaway rates in the range of 0.5% to < 4%

Set up and run down losses

Monitoring of product changeover

Improved product scheduling

Feedback systems

Smart monitoring

Overproduction

Key economic issues associated with overproduction

Collaborative programmes

Reducing variance

Importance of Lean thinking

Overproduction

Inventory

Defects

Transportation

Motion

Over processing

Waiting

The Food and Drink Supply Chain

Simplified supply chain

Manufacturer/processor

Producer

Hospitality and food service

Retailers

Households

Distributors

Food waste in the supply chain

Hospitality & Food service

Distribution

Manufacturing/ processing

Consumer

Foodstuffs

Manufacturing/ processing

Overfill

Reject product

Underfill

Process waste

By products

Unavoidable

Unsold

Transfer losses

Storage losses

Reject raw material

3% to 10% of turnover

Author’s studies

Food wastes

Food waste in the supply chain

Consumer

Foodstuffs

Distribution

Internal damage

Overstock

Out of temperature

Out of date

Discounted sales

Goods returns

Sell-offs

0.1-0.5% of turnover

Author’s studies

Incorrect rotation

Food wastes

Hospitality & Food service

Distribution

Manufacturing/ processing

Food waste in the supply chain

Consumer

Foodstuffs

Hospitality & food service

Over-prepared

Peelings

Trim/offcuts/crusts

Out of date

Plate waste

Unusable

Storage losses

6-14% of food

purchased

0.5kg/

meal

Sustainable Restaurant

Association/Lean path

Burnt/dropped

Food wastes

Hospitality & Food service

Distribution

Manufacturing/ processing

Task 2 - identifying wastes along the supply chain

Hospitality & Food service

Distribution

Manufacturing/ processing

Consumer

Foodstuffs

In groups look to identify the key stages of the supply chain for the product on your table. Map out the supply chain of the product and the key wastes at each stage. Try to identify those wastes that will have the highest costs associated with them. Consider some key opportunities for waste prevention throughout the supply chain of the product.

http://www.igd.com/our-expertise/Supply-chain/Sustainable-supply-chains/2661/Supply-Chain-Waste-Prevention-Guide-2012-from-factory-in-gate-to-till/

Typical food costs, some examples

Sources: food waste prevention reviews, * WRAP study

Business Cost £ per

tonne

Hospitality and Food Service * 1,700

Food retail distribution centre 1,600

Food service distributor 1,600

Crisp manufacturer 1,000

Ready meals manufacturer 750

Jams/preserves maker 650

Pie manufacturer 630

Sandwich maker 530

Salmon smoker 2,300

Potato processer 100

Each tonne of food waste prevented saves this much in ingredient costs…

Plus more in energy, labour, overheads, etc

Estimating food waste value, example

A food distributor disposes of 100 tonnes of mixed waste each year.

An estimated 40% of the waste is food.

The average cost of foodstuffs purchased is £1,500/tonne.

How much value is in the waste?

What’s the impact on your customer?

You supply £50,000 of food to your customer each year.

The customer wastes 10% of it.

What is the impact on their bottom line?

Measuring and monitoring

Benchmarking

Key Performance Indicators

Using graphs to identify opportunities

Trend lines

Food waste prevention – best practice

Before…… ……After

Best practice - manufacturing

Jams/Preserves, prevention Better draining of bulk

containers Liners for drums to improve

draining Rinse drums into the process Heating and scraping bins of

viscous product Pigging systems on transfer

lines Mangles to help product

transfer Process improvement filling

capability Process improvement poor seal

Jams/Preserves, wastes

Filter cake from orange pressing

Product from transfer lines

Reject product

Drum and tote cleaning waste

Effluent cake from water treatment

Sugar remaining in bags

Product overfill

Effluent to drain

Reducing product wastage – Natures Way

‘Rejects’ retrieved and product reclaimed

Repackaged to minimise waste

Reject packaging segregated for baling and recycling

Significant waste reduction

Best practice - distribution

Food distribution, wastes

Goods returns

Internal damage

Out of temp on vehicle

Overstock

Out of date

Sell-offs

Discounted sales

Staff shop sales

Food distribution, prevention

Outgoing Quality Control on fresh produce

Investigate causes of returns (packaging, handling, storage)

Quarantine short-dated product

Good practice in picking (level picking, crates for loose bottles, wrap pallets returned to bulk)

Sales of overstock to third parties

Earlier transfer of short-dated product to damages department

Buy more fresh product direct from growers

Donations to food redistribution charities

Best practice - distribution

Best practice – supply chain

Stockless cake flow-through

Best practice – food donations Premier Foods worked with charitable organisations to

donate food to help people in urgent social need:-

1050 tonnes of food diverted from landfill in 2009. Equivalent to 1.6 million meals with a value of £500,000 donated to charity

“Premier Foods has made a commitment to stop sending any waste to landfill by 2015. Food donations are a positive way to help those in social need whilst also reducing our impact on the environment. It’s absolutely the right thing to do” Ian Bowles, Group CSR Manager

Asda has announced plans which will see surplus food from its supply chain redistributed to charity. According to Asda, this will mean the equivalent of an extra 3.6 million meals each year for Fareshare. It will also save the 910 charities supported by FareShare as much as £4.5 million a year.

Hospitality and food service

prevention

Good stock rotation

Adjust regular orders

Supplier manages stock

Supplier does preparation

Production based on data/forecast

Specials menu

Skin-on chips

Simpler menus

Rescue recipes

Menu option smaller portions

Optional sides

Portion control

Best practice – Hospitality and Food Service

Hospitality & food service

wastes

Spoilage

Offcuts

Peelings

Trimmings

Over-preparation

Plate waste

Task 3

What food waste is in YOUR supply chain?

Food waste in the supply chain

Consumer

Foodstuffs

Your business

Your customer

Consumer

Suppliers

Prevention

Hospitality & Food service

Distribution

Manufacturing/ processing

Food wastes

Waste Prevention opportunities Barriers

Task 3b: Identifying barriers

Your

busi

ness

Your

cust

om

er

Useful information: food and drink waste See WRAP website Food pages for:-

Resource maps (Fruit and Veg, Meat, Fish)

Supply chain research listing

Reducing food waste through retail supply chain collaboration

Waste in the supply of food and drink to UK households

See WRAP website HaFS pages for:-

The Composition of Waste Disposed of by the UK Hospitality Industry

Current research on Hospitality and Food Service waste

Voluntary agreement for Hospitality and Food Service sector

SME tool to support the Voluntary Agreement

Online water efficiency tool:-

The Rippleffect: water efficiency for businesses

Come along to the next session to uncover more opportunities....

Forthcoming technical workshops:

11 July 2013 AM – Water efficiency

11 July 2013 PM – Energy efficiency

03 October 2013 – Transport and distribution

03 October 2013 – Behaviour change

Any Questions ?