+ Business Case for Efficiency Resilient and Competitive TCF - PowerPoint PPT Presentation

+ Business Case for Efficiency Resilient and Competitive TCF through Energy and Materials Efficiency 14 th August 2014 Andrew Chamberlin The project is funded by Sustainability Victoria’s Smarter Resources Smarter Business program and delivered by the Council of Textile & Fashion Industries of Australia Limited (TFIA).

+ Introductions

Today’s Agenda Topic Timing (mins) Introduction Welcome 10 - 15 Purpose, Program 5 Today’s Agenda 5 Content Efficiency 10 Why Efficiency? 10 - 15 Why Not Efficiency? Potential for Savings 20 Business Case and Case Studies 30 - 35 Things you can do today 20 Wrap Up Summary 5 Next Steps 3 Contacts, Further Info 2 TOTAL 120

Purpose of the Program n Objectives Increase knowledge and skills … n how to identify the impact of energy and resource costs on the business. n develop and manage systems to monitor energy and resource costs n assess energy and resource efficiency opportunities n engage their staff in adopting new energy and materials efficient processes. n develop simple, prioritized and costed efficiency action plans

Introduction

Purpose of the Program n Today: n Leave with increased knowledge of: n The Concept of energy and materials efficiency, and how it relates to sustainability n Understanding that businesses in the sector have undertaken energy and materials efficiency projects that have significantly reduced costs and improved the environmental performance of a business

Sustainability and Efficiency Sustainability is: n Better Environment n Social Outcomes n Profitable Business employing people n Sustainability is about long term prosperity. (triple bottom line, intergenerational equity)

+ Sustainability and TCF

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+ Sustainability Roadmap VALUE* Increasing long- term revenues TO and value GROUP ($) Increasing short-term revenues Reducing costs * Adapted from DowseCSP building on PwC tangibles value hierarchy Reducing risks and McKinsey & Co intangibles generic model. FY01 FY02 FY03 FY04 FY05 FY06 FY07 NOW & BEYOND TIME Source: Investa

+ 7 Principles of eco-efficiency 1. Reduce the material intensity of goods and services • (make more stuff with fewer inputs) 2. Reduce the energy intensity of goods and services • (make more stuff with less energy) 3. Reduce the dispersion of any toxic substances • (make more stuff with less poisonous waste) 4. Enhance the recyclability of materials • (make the stuff recyclable) 5. Maximise sustainable use of renewable resources • (make stuff out of stuff that won’t run out) 6. Extend the durability of products • (make stuff that lasts) 7. Increase the service intensity of goods and services • (meet demand with a service and not with stuff)

+ Application of ecoefficiency 1. Can any of these principles of eco-efficiency be applied to your services or products? 2. Have you done/are thinking about any projects? Can you: • Produce a product that performs the same function with less material? • Provide your service with less energy, water, waste? • Remove toxic chemicals from your supply chain? • Make your materials more recyclable? • Use more renewable resources? • Make products last longer? • Increase Service intensity?

Why Efficiency? Compliance + Recognition Customers “The right thing to do” Financial Savings

Why Not Efficiency? Don’t know enough about it No Money Too Busy Don’t Know Where to Start + Worth the effort?

+ Energy and Waste Heirarchies

+ Savings Impact on Profit n Eco-efficiency Savings directly increase Profit: Given 5% Margin: $1,000 of Savings equates to $20,000 of Sales! What do you need to do to have that same impact on Sales? How many units would you need to sell? How long would that take? Would you need extra people, systems, space? What is the long-term impact of that extra margin on your business?

+ Potential Savings What to look for.

+ No Cost Activities Easy to Implement: n Turn-off unused lights and equipment n Accessible and labelled recycling bins n Air conditioning temperature n Default printing double-sided n Green Initiatives notice board: n Report potential and actual savings n Efficiency tips and stories n Car pooling contacts

+ Low Cost Activities n More detailed implementation, generally time or maintenance n Management and Process n Start up & shut-down n Maintenance n Scheduling n Equipment Stocktake and Planning n Work with utility providers n Replacement & Recurrent n Lights n Appliances n Timers, Sensors n Variable Speed Drives, HVAC, Heat Exchangers etc.

+ Invest-to-Save n Capital expenditure n Full retrofits n Replacement of key plant n New Plant n Plan Ahead n Key plant is key plant – down time is $$ n Efficient models n Life-time cost n Grant Funding Available?

+ Potential Savings Prioritising.. Boot-Strapping..

+ Question: n Do these ideas highlight anything you can do? n Raise any questions or if’s and but’s ? n Have you done any of these? n How did the ideas originate in the business? n What outcomes? n Business Case vs Green Case.

+ Efficiency for Small Businesses Business Case Studies Nobody Denim Onterra Carpets Beaulieu of Australia Geofabrics Australia

Case Study: Nobody Denim Staff Communications and Suggestions n 5 teams n Suggestion boxes – all ideas investigated and reported on Culture – letting people know it’s OK to tell the boss how you think things could work more easily. Target : Wanted to find 50% resource savings through efficiencies and consolidating operations Energy and Materials Assessment Funding Assistance from Sustainability Victoria for the above. Already Lean Manufacturing in place: n 5S n Visual Manufacturing

+ Case Study: Nobody Denim Fashion designer and manufacturer Energy: n Lighting Upgrades n Purchase of new energy efficient equipment such as sewing machines, washers, gas driers – to be installed in the coming months: n Laundry boiler upgrades, insulation n Energy Savings forecast: 45%

+ Case Study: Nobody Denim Fashion designer and manufacturer Materials: n Detailed materials assessments: n Purchase price of waste fabric = 20 times disposal cost n True cost of wasted finished product = 425 times disposal cost n Forecast Materials Savings: n 10% in fabric, 11,880kg n 45% chemicals

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Case Study: Onterra Carpets Modular carpet designer and manufacturer Energy: n encouraging staff to switch off equipment when not in use. Annual Saving: $3,000 n tuned the gas burners, cutting total gas consumption by around four per cent. Annual saving $5,000. n Leak minimisation for compressed air to reduce continuous power requirements for by 30 per cent, Annual Saving: $10,000 n Light sensors and skylights in the factory. Annual Saving: 6,000 kWh of electricity ($1,500 @ 24c/kWh) n Revised car purchasing policy with increased emphasis on fuel efficiency. n installed solar powered security lighting in the car park area

Case Study: Onterra Carpets Modular carpet designer and manufacturer Materials: n More efficient yarn processing equipment has improved production yield, with expected raw material savings of up to $500,000 per annum and a 15 month payback period n Product Development n alliance with Dunlop to investigate recovery and reuse of Ontera’s carpet trim waste. n fully recyclable non-PVC carpet tile backing system and a reconstituted polyurethane foam carpet tile cushion backing n a carpet tile backing made of crumbed rubber, with the opportunity to reuse car tyres n designing carpet tiles for disassembly with an in-built ‘zippering layer’, resulting in simple separation using a low-energy process n extending the life of carpet tiles through reuse as an alternative acoustic panel or noise attenuation barrier.

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Case Study: Beaulieu of Australia Woven fabric manufacturer - Jacquard weaving mill Sustainable Value Stream Mapping n Mapping production flow n Analysing electricity bills n Creating action plans: n Consumption and peak demand n Monitors on Machines n Found only 40 – 45% of electricity use was embedded in the product – contributed to value-adding processes

Case Study: Beaulieu of Australia What did they do? n Policy to use large energy consuming machines on alternate days n Switching off lighting in unused areas n Recycling Cones, Cardboard, Yarn n Next steps (Stages 2 and 3) n Weaving looms at higher speeds n Reduce stand-by power consumption by switching looms off when not in use n Energy savings of 5 – 10% for Stage 1 n Waste reduced by 16% n Efficiency Savings of $11,000, plus: n Peak electricity costs reduced by $1,000 per month